Deutsche Pfandbriefbank today (Wednesday) added Eu150m to a Eu100m three year floating rate mortgage Pfandbrief first launched on Thursday, with the tap increased from a targeted Eu100m due to greater than expected demand, according to a lead syndicate official.

The Eu150m increase was priced at 20bp over three month Euribor, in line with the re-offer spread on the underlying issue. The bonds pay a quarterly coupon of 20bp over.

Today’s tap had been marketed as for Eu100m, but greater than expected demand led the leads – DZ Bank and UniCredit – to increase the size of the deal, said a banker involved in the tap.

A syndicate official away from the deal said that there is increasing investor interest in floating rate notes in covered bonds and SSAs amid expectations of interest rates going up, and that floaters benefit issuers because they do not need to swap the proceeds.

The European Investment Bank is out with a Eu250m increase of a Eu2.5bn 2020 floating rate issue today, at 18bp over three month Euribor.