Maturity: 7 years
Income: fixed annual interest payment
Redemption: at par value
Price risk: medium
Issuer risk: very low
The Bund-Laender-Anleihe (Bund-Laender bond) is a fixed-income security with a maturity of around 7 years from the time of issue. Interest is paid once a year.
The Bund-Laender-Anleihe, which was issued in a volume of € 3 bn by the Federal Government and ten states in 2013, is not a 100 % German Government security due to the partial debt-like liability of the issuer.
The Bund-Laender-Anleihe was issued on 26 June 2013 as part of a syndicate process with a coupon of 1.5 % and an issuance volume of € 3 bn. In addition to the Federal Government, 10 Federal states took part in the issue with varying amounts. The current issuance volume of € 3 bn can generally be increased by new issues of additional Bund-Laender-Anleihen with different issuer structures.
Federal Government and state shares of the issue
|Federal Republic of Germany||13.50 %|
|Mecklenburg-Western Pomerania||3.25 %|
|North Rhine-Westphalia||20.00 %|
The Bund-Laender-Anleihe is traded on all German securities exchanges, on electronic trading systems and OTC. After the issue, the consortium banks ensure that there is sufficient tradability. The Federal Government/Finance Agency do not currently offer any secondary market activities for the Bund-Laender-Anleihe.