In brief: Commerzbank announced the mandate for an inaugural issue off a new mortgage Pfandbrief programme this (Wednesday) afternoon, with a Eu500m no-grow seven year issue expected to be launched soon.

Deutsche Bank, Natixis and UniCredit have been mandated alongside Commerzbank for the debut deal. A syndicate official at one of the leads said more details will be release tomorrow (Thursday) and gave as comparables a Deutsche Bank September 2020 mortgage Pfandbrief trading at 5bp through mid-swaps, Deutsche Postbank March 2020s at -6bp, and UniCredit AG April 2020s at 2bp over.

The new mortgage backed programme comes after the German bank in February sold a ground-breaking, Eu500m SME backed structured covered bond, and in June inaugurated a public sector Pfandbrief programme with a Eu500m issue.