German mortgage bank Rheinische Hypothekenbank (Rheinhyp) recently launched the first multi-jurisdiction pan-European securitization of commercial mortgages. The E1.381 billion ($1.34 million) synthetic securitization deal, called Europa One, was split into nine tranches and was arranged by Barclays Capital and Rheinhyp's parent company, Commerzbank Group.

Moody's Investor Service and Standard & Poor's gave triple-A ratings to the three A class tranches. The 1.3 year average life E290 million A' tranche priced at 20 basis points over three month Euribor. The spread on the E400 million A2 notes, average life 4.1 years, was 30 over three-month Euribor, and the 6.6-year A3 notes, also for a value of E400 million, priced at 35 over.

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