Aareal Bank

◆ German lender enjoys window alone ◆ Eye-catching spread attracts bumper book ◆ Deal lands close to fair value

◆ Specialist CRE lender raises capital to replace AT1 it kept extending since 2020 ◆ Outcome seen as positive for banks involved in the CRE lending ◆ Dollar funding comes some 300bp below euro AT1 coupon

◆ Sentiment towards CRE exposed issuers far cry from February 2024's lows ◆ Aareal eyes replacing AT1 it has extended since April 2020 ◆ Switches from euros to dollars due to costs