HSH Nordbank issues public-sector Pfandbrief in the amount of € 500 million

Hamburg/Kiel, July 11, 2017 - HSH Nordbank is continuing its Pfandbrief strategy with the successful issue of a public-sector Pfandbrief with a three-year term. The benchmark bond is in the amount of EUR 500 million and is backed by loans to the public sector. Rating agency Moody's has given the Pfandbrief a rating of "Aa2".

The order book was substantially oversubscribed with a volume of more than EUR 900 million and was closed after a short time. Alongside institutional investors based in Germany, foreign investors, who subscribed to more than 30 percent, also showed interest in the issue. It is a fixed-income Pfandbrief with an annual coupon of 0.1 percent. Alongside HSH Nordbank, Commerzbank, Natixis, NatWest Markets and UniCredit participated in the transaction.

"The three-year term has met with high investor demand, which moreover constitutes a very good addition to the maturities of our outstanding Pfandbriefs", said Mark Bussmann, Head of Treasury & Markets at HSH Nordbank. "HSH Nordbank is showing itself to be a reliable partner in the Pfandbrief market also in the wake of the privatisation phase, ensuring a corresponding continuity."

HSH Nordbank uses Pfandbriefs as a strategic instrument in refinancing. The target group are institutional investors based both in and outside Germany. In 2016, HSH Nordbank placed mortgage-covered and public-sector Pfandbriefs in benchmark format with a total volume of EUR 1.35 billion.

The information contained in this press release does not constitute an offer for the sale of any type of HSH Nordbank AG securities. Securities of HSH Nordbank AG may not be sold in the United States without registration pursuant to US securities legislation, unless such a sale takes place on the basis of relevant exceptional provisions.

This press information can contain forward-looking statements. These statements are based on our beliefs and assumptions, on information currently available to us which we consider reliable. Forward-looking statements include all statements which are not historical facts, including information concerning future growth prospects and future economic developments.

Such forward-looking statements are based on assumptions relating to future events and are subject to uncertainties, risks and other factors, a large number we cannot influence. Thus actual events can differ considerably from the forward-looking statements made. We make no warranty for the correctness or completeness of these statements or the actual occurrence of the statements made. Furthermore, we assume no obligation for updating the forward-looking statements after this information has been published.