Commerzbank launched a first benchmark Pfandbrief under its own name today (Tuesday), a Eu500m five year public sector issue, while RLB Niederösterreich-Wien and Caffil, the reincarnated Dexia MA, have mandated for roadshows.

Commerzbank finished a roadshow of its public sector programme on Friday, and will price its inaugural issue at 2bp over mid-swaps today, via leads Crédit Agricole, BNP Paribas, Deutsche Bank and Commerzbank. Initial price thoughts were set at the mid-single digits over mid-swaps, and guidance at the 3bp over area. Around Eu1bn of orders were placed for the deal, said a lead syndicate official.

At 2bp over, the deal will be priced in line with the issuer’s target, he said, adding that a more subdued market did not harm the transaction.

“Five year public sector Pfandbriefe still work well,” he said.

A syndicate official away from the leads said that the outcome was positive given the weaker market tone, with last week’s sell-off still being felt.

“Last week 90% of deals that came this year, across products, were wide of re-offer,” he said, “and that leaves a trail.”

Today’s deal is the first benchmark Pfandbrief for Commerzbank under its own name, with the group having previously issued Pfandbriefe via Eurohypo, now Hypothekenbank Frankfurt, which is being wound down. Commerzbank sold an SME backed covered bond in February, but this was structured outside Germany’s Pfandbrief legislation. Commerzbank also plans to issue mortgage Pfandbriefe.

Caisse Française de Financement Local (Caffil), the successor entity to Dexia Municipal Agency, is preparing to make its debut. It announced a roadshow mandate yesterday, awarded to Barclays, BNP Paribas, Deutsche Bank, Natixis and HSBC, and will be on the road next week, from 24 to 28 June. The issuer previously indicated that it aims to sell Eu3bn-Eu5bn of covered bonds this year.

Austria’s Raiffeisenlandesbank Niederösterreich-Wien (RLB NŐ-Wien) added another mandate to the pipeline today, for a euro benchmark mortgage covered bond. The issuer will go on a roadshow starting next Thursday, 27 June, via Crédit Agricole, DZ Bank, LBBW, JP Morgan and Raiffeisenlandesbank NŐ-Wien, and a deal could follow.

The Austrian bank made its benchmark covered bond debut in September 2012, with a Eu500m 10 year mortgage issue.