Bayerische Landesbank is poised to return to the market for the second time in less than two months, having today (Tuesday) announced a mandate for Eu1bn 10 year public sector Pfandbrief. France’s CM-CIC has raised Eu1.5bn of five year funding via its inaugural obligations à l’habitat issue.

BayernLB is expected to launch a new issue tomorrow (Wednesday), with Crédit Agricole, Credit Suisse, Deutsche Bank and Royal Bank of Scotland mandated to work alongside BayernLB. Indications of interest are set to be gathered this afternoon.

The German issuer last came to market with a benchmark on 19 May, selling a Eu1.25bn November 2014 public sector Pfandbrief at 6bp over mid-swaps, the tight end of guidance of the 7bp over area.

A back-up in yields has made longer dated transactions a compelling offer, according to syndicate bankers.

Crédit Mutuel-CIC is pricing a Eu1.5bn five year deal under France’s new obligations à l’habitat framework. The re-offer spread has been fixed at 58bp over mid-swaps, the middle of guidance, after leads Barclays Capital, BNP Paribas, Danske Bank and HSBC yesterday (Monday) collected indications of interest on the basis of the high 50s.

Orders totalling Eu1.7bn were placed for the inaugural issue.

A syndicate banker away from the leads said that the 58bp over area had represented a good range that would allow for performance. The only challenge facing the deal was that several corporate and agency issuers, such as Enel, Nederlandse Waterschapsbank and FROB were also in the market today.

Another syndicate banker said that deal looked “decent”, and that pricing was appropriate in comparison with outstanding issues, for example being slightly wider than where the issuer’s 2017s are trading.

According to a banker at one of the leads, one of the main factors in execution was the thinning of the investors base as the summer holiday season sets in. He said that this contributed to the books being opened today and not yesterday afternoon.

“If anything, we could have perhaps hoped that more people would have been in yesterday,” he said, “although when we opened books today things went quite smoothly.

“I get the feeling that investors are not piling on top of each other to get orders in,” he added, “and so people are saying that next week the market is going to be even tougher.”

Around 60 accounts participated in the transaction, which he noted was lower than might have been expected, although he pointed out that the order book was of a high quality and the Eu1.7bn of total orders comfortably sufficient to sustain the Eu1.5bn size.