ANNUAL REPORT 2006 - DG Hyp

Management Report
REFINANCING STRUCTURE FOR 2006
Traditional
issues
€ mn %
Jumbo 2,000 17.1
DIP* 3,595 30.7
Traditional issues 6,119 52.2
11,714 100.0
* Debt Issuance Programme (DIP)
Jumbo
DIP*
Demand-oriented funding
In addition to standardised, large-volume Pfandbriefe,
DG HYP also placed smaller individually-structured issues in
the form of registered securities. Such private placements
are explicitly structured to meet specific investor requirements.
Given the ongoing low interest rate environment,
we saw particular demand for floating rate issues (FRNs).
Placement in the German cooperative banking sector
During the period under review, a total of € 2.4 billion
was placed in bonds and promissory notes in the German
cooperative banking sector, which represents an important
investor base for DG HYP. This corresponds to 21 per cent
of placements of DG HYP issues.
Debt Issuance Programme
The standardised DIP documentation is a key tool in the
funding process, given the increasing internationalisation
of our investor base. In the 2006 financial year, the debt
issuance program was adapted to the amended European
Prospectus Directive. DG HYP thus fulfils the requirements
to continue to comply with strategic diversification on the
international capital market. Issues brought to the market
within the scope of this standardised programme accounted
for 31 per cent of the refinancing volume. The issuing
programme comprises covered bearer bonds in the form of
large-volume jumbo Pfandbriefe and smaller public-sector
covered bonds and mortgage bonds. Uncovered bearer
bonds complete the opportunities offered by the DIP.
Derivatives
New derivatives business comprises Eonia swaps and
interest rate swaps. Interest rate swaps are used to hedge
the liabilities side of the balance sheet, as well as to neutralise
risks from assets. The nominal volume of derivatives
outstanding as at 31 December 2006 was € 209 billion.
Deutsche Genossenschafts-Hypothekenbank AG | Annual Report 2006
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