At least two Pfandbrief issuers are eyeing dollar covered bonds, with NordLB having carried out a series of investor meetings last week and Münchener Hypothekenbank also considering a deal, according to syndicate bankers.

NordLB has mandated Bank of America Merrill Lynch, Barclays Capital, BNP Paribas, Credit Suisse and HSBC and last week met with US and Asian investors as part of a roadshow held from 20-23 June.

NordLB, Hannover

The issuer has completed 144A documentation, with market participants highlighting that any forthcoming deal from the issuer would be the first Pfandbrief in that format since the US market reopened to benchmark covered bonds last year. NordLB’s Pfandbrief would be public sector backed.

Münchener Hypothekenbank is considering launching a three year, mortgage backed Reg S deal. Such a transaction would be its debut in that format, with the target size said to be $1bn.

A 144A/Reg S covered bond debut from HSBC is also in the pipeline, with the UK bank having mandated BNP Paribas, HSBC, Royal Bank of Scotland and Société Générale. A roadshow is understood to have finished yesterday (Monday).

Korean Housing Finance Corporation is on the road this week with BNP Paribas, Nomura and Standard Chartered Bank in preparation of a 144A/Reg S covered bond.

The timing of any deals is uncertain given a difficult market backdrop, the falling of the end of the first half of the year this week, and a public holiday in the US on Monday that could affect market participants’ availability, according to syndicate officials.

Münchener Hyp is also understood to not have definitively decided on how it will proceed with the new issue project.

Any resumption of euro supply hinges on the outcome of a Greek parliamentary vote on Wednesday on a new austerity package agreed with the European Union and the International Monetary Fund.

One syndicate official said that he could imagine some primary market activity on Thursday if the vote is passed and market sentiment turns sufficiently positive, although another was more doubtful, citing a lack of flows and constructive sentiment in the secondary market as grounds for not expecting the primary market to reopen this week.