German-based Commerzbank might postpone a planned United States-denominated debt issue for its 51 per cent-owned Hypothekenbank in Essen due to adverse bond market conditions.
The issue is one of the goals of Hypothekenbank's first 10-stop global roadshow.
Hypothekenbank chairman Hubert Schulte-Kemper yesterday said despite the delay, the bank's roadshow would proceed.
Head of Treasury Thomas Kaysh said a triple-A rated bank such as Hypothekenbank should tap US dollar funding at about 5 basis points over the London interbank offered rate (Libor).
But recent volatility in world bond markets had boosted this cost to 15 basis points over Libor, and the bank might feel it was a bad time to proceed with its debt issue.
Commerzbank's global head of debt capital markets Yann Gindre said it was difficult to forecast when the issue would go ahead.