DePfa eyes the broader horizon
The Commerzbank family is a large one: the bank is 97.8% owner of Rheinische Hypothekenbank and holds a majority stake in Hypothekenbank in Essen, alongside stakes in other banks in Stuttgart, Wiesbaden, Bremen, Hamburg, Leonberg and Quickborn.
As an issuer, Commerzbank's participation in the domestic markets has been limited: whereas subsidiary Rheinische Hypothekenbank has visited the local market close to 20 times since the start of 1998, borrowing over Dm9 billion ($5.1 billion), and Hypothekenbank in Essen has sustained a similar level of issuance, Commerzbank itself has issued domestically only twice in 1998, with two Dm1 billion 10-year issues in May and June, the latter a floating-rate note. "Commerzbank does not issue in the Pfandbrief market," says Yann Gindre, global head of capital markets. "It has two subsidiaries that do."
Instead, Commerzbank has been busier in overseas markets. Acting as bookrunner on its own issues, the bank has borrowed in dollars ($1.3 billion in four issues since January, the first with Warburg Dillon Read taking a rare joint-lead, joint bookrunner role), and Czech koruna - Kr2.5 billion ($81 million) this year, managed by WoodCommerz, a subsidiary in Prague which has been fully merged into Commerzbank since August 20.