Bond Kommerzbank AG 5.45% ( DE000DR5B6N6 ) in EUR

Issuer	Kommerzbank AG
Market price	100 % ⇌
Country	Germany
ISIN code	DE000DR5B6N6 ( in EUR )
Interest rate	5.45% per year ( payment 1 time a year)
Maturity	11/09/2047
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Minimal amount	100 000 EUR
Total amount	6 000 000 EUR
Next Coupon	11/09/2025 ( In 40 days )
Detailed description	Commerzbank AG is a major German bank offering a wide range of financial services including corporate banking, private banking, and asset management, with a significant international presence. An in-depth analysis of a recent debt issuance reveals key insights into the fixed-income market, specifically focusing on a bond originating from Germany's financial sector. This instrument, identifiable by its ISIN DE000DR5B6N6, is currently trading at 100% of its nominal value on the market. Denominated in Euros (EUR), this security offers a notable annual interest rate of 5.45%, with coupon payments occurring annually. The issuer of this bond is Commerzbank AG, a prominent financial institution based in Germany. Founded in 1870, Commerzbank has evolved into one of Germany's largest banks, boasting a substantial footprint in both corporate and retail banking sectors. It plays a crucial role in financing the German Mittelstand (small and medium-sized enterprises) and provides a comprehensive suite of banking and capital market services globally. As a systemically important bank within the Eurozone, Commerzbank's debt issuances are closely monitored by investors seeking exposure to the German financial landscape and robust credit quality, albeit within the evolving regulatory framework and competitive dynamics of the European banking sector. This particular offering, issued from Germany, has a total size of EUR 6,000,000. Potential investors should note the minimum lot size for acquisition, set at EUR 100,000, which typically targets institutional buyers or high-net-worth individuals, potentially influencing secondary market liquidity for smaller participants. A defining characteristic of this bond is its extended maturity date of September 11, 2047, classifying it as a long-duration asset. The 5.45% annual coupon rate presents an attractive yield in the current market environment, promising a steady income stream over an exceptionally long term. However, this extended maturity exposes investors to significant interest rate risk, as the bond's valuation would be particularly sensitive to fluctuations in benchmark rates over its nearly 25-year remaining life. Its current trading at par suggests that the market currently perceives the bond's coupon and the issuer's creditworthiness as fairly valued, or it may indicate a recent primary market issuance at par. In summary, this Commerzbank AG bond represents a long-term investment opportunity for those seeking exposure to the German banking sector, offering a substantial yield, but necessitating careful consideration of its extended duration and the investment thresholds required for participation.