Bund-Laender-Anleihe

Profile

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) was a fixed-income security with a maturity of around 7 years from the time of issue. Interest was paid once a year.

Primary market

The Bund-Laender-Anleihe, which was issued in a volume of € 3 bn by the Federal Government and ten states in 2013, was 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.

Federal Government and state shares of the issue

Federal Republic of Germany13.50 %
Berlin13.50 %
Brandenburg  6.75 %
Bremen13.50 %
Hamburg  5.25 %
Mecklenburg-Western Pomerania  3.25 %
North Rhine-Westphalia20.00 %
Rhineland-Palatinate  6.75 %
Saarland  6.75 %
Saxony-Anhalt  2.75 %
Schleswig-Holstein  8.00 %

Secondary market

The Bund-Laender-Anleihe was traded on all German securities exchanges, on electronic trading systems and OTC. After the issue, the consortium banks ensured that there is sufficient tradability. The Federal Government/Finance Agency did not offer any secondary market activities for the Bund-Laender-Anleihe.