By Laura Contemori – ROME (Econostream) – Three German federal states on Wednesday priced a €1 billion five-year state treasury note (Landesschatzanweisung).

The senior unsecured issue is evenly split among Mecklenburg-Western Pomerania, Rhineland-Palatinate and Schleswig-Holstein.

The note matures on July 9, 2031 and carries a fixed annual coupon of 2.800%. The reoffer spread was set at 13bp over mid-swaps, with a reoffer price of 99.669 and a yield of 2.872%.

The note was priced at 26.4bp over the 2.50% German federal note due April 16, 2031.

The issue is expected to be rated AAA by Fitch.

Settlement is scheduled for July 9, 2026.

The issuers will retain €200 million of the transaction.

The note is governed by German law and will be listed in Frankfurt and Hamburg.

Commerzbank, DekaBank, HSBC, LBBW and TD Securities acted as joint bookrunners.

The time of execution was 12:37 CET.