Sparkasse KölnBonn is aiming to return to the benchmark covered bond market for the first time since 2008 in the first half of this year, according to an official at the issuer, with greater acceptance of Eu500m sized deals, a positive market environment, and refinancing needs behind the move.

Ralph Rutemöller, responsible for funding and collateral management in the asset-liability management, fixed income department at Sparkasse KölnBonn, told The CBR that the issuer would like to launch a benchmark mortgage Pfandbrief in the first half of this year, market conditions permitting, but that it is too early to be more specific about its plans.

The issuer was the first German savings bank to issue Pfandbriefe, according to Rutemöller, and last tapped the benchmark covered bond market in February 2008, with a Eu500m three year mortgage Pfandbrief. Its last issue before that was a Eu500m five year public sector Pfandbrief that matured in June last year.

The savings bank has been encouraged to return to the market by a relatively positive market environment and growing acceptance of sub-jumbo sized deals, with refinancing needs also driving the planned move, said Rutemöller.

The issuer has two cover pools, mortgage backed and public sector backed, with both programmes rated Aaa by Moody’s.