Press Information

Aareal Bank successfully places second Jumbo Pfandbrief issue

Wiesbaden, 30 March 2007 - Aareal Bank placed its second Jumbo Pfandbrief issue on the capital markets yesterday, continuing its successful Jumbo issuance strategy initiated in 2006. The mortgage bond issue has a 4.0% coupon and a maturity on 1 February 2010.

Demand for the issue was brisk straight after the order books were opened, with orders in excess of € 1 billion placed within just one hour. The pricing indication of mid-swaps minus 5 basis points was thus improved to minus 5.5 basis points. The issue was two times oversubscribed upon order book closing.

The success of the transaction was not least due to sound preparation, including a seven-day roadshow attended by more than 50 investors from seven countries. Investors were not only convinced by Aareal Bank’s business model and capital market presence, but also by the unique regional diversification of its asset pool. The top quality of the issue has been confirmed by a triple-A rating from FitchRatings.

Strong demand by international investors allowed for an allocation of more than 40% outside Germany, with investors in Asia accounting for 15%, followed by the Nordic region (8%), Italy (5%), the UK (5%), France (2.5%), Luxembourg (2%), Austria (2%) and other countries. The bank thus clearly sustained the internationalisation of its capital markets presence.

“The strong oversubscription and successful pricing of our second Jumbo Pfandbrief issue is clear evidence of investor confidence in Aareal Bank and its capital market presence”, said Christof M. Schörnig, member of the Management Board of Aareal Bank AG responsible for the bank’s capital markets activities.

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