PBB Sells First Benchmark Bond After Real Estate Loans Scare (1)

Deutsche Pfandbriefbank AG has sold its first benchmark-sized bond since the German bank’s exposure to commercial real estate loans sent its debt into a tailspin.

The lender issued a €500 million ($527 million) long three-year green senior preferred bond on Wednesday, according to a person familiar with the matter, who asked not to be identified. PBB will use the proceeds to finance green loans tied to renovations or the construction of new buildings.

Pricing was set at spreads of 180 basis points over mid swaps, broadly unchanged from initial talk levels, while books were recorded above €500 million.

Concerns about ...