Nassauische Sparkasse has issued its first Pfandbrief, a Eu30m deal on which the savings bank aims to build to reach issuance volumes in the “high triple digits”, with an analyst noting that issuance of up to Eu100m a year is conceivable.

The bank was one of five German financial institutions that HSBC Trinkaus analysts previously identified as preparing to make their Pfandbrief debuts this year, alongside Natixis Pfandbriefbank, Santander Consumer Bank, Sparkasse Dinslaken and Sparkasse Oberhausen. (Click here for previous coverage.)

Naspa’s inaugural issue was several times oversubscribed, according to the issuer.

Chairman of the executive board Stephan Ziegler said it was “a good start” and that the issuer has at its disposal several billion euros of cover pool-eligible assets. In the long term the issuer is targeting issuance volumes in the “high triple digits” millions of euros, he added.

Matthias Melms, covered bond analyst at NordLB, said that issuance of Eu100m a year would be conceivable.

Although the bank’s prevailing liquidity situation does not necessitate refinancing via Pfandbriefe, it decided to turn to the funding instrument to diversify its refinancing sources, according to the issuer, which will help it secure a strategic competitive advantage and meet higher Basel III requirements.

The issuer will initially only issue mortgage-backed Pfandbriefe.