Deutsche PBB Returns to Junior Bonds to Replace Old Debt

German commercial property lender Deutsche Pfandbriefbank AG sold its first subordinated bond in seven years to fund the buyback of some of its old junior debt.

The bank priced €300 million ($349 million) of Tier 2 bonds on Wednesday at a coupon of 7.125%, with order book amounting to more than €1.6 billion. The debt will be callable in 2030 and mature in 2035, according to a person familiar with the matter who asked not to be identified. The issue will finance a partial buyback of two Tier 2 bonds that mature in 2027.