HSH Nordbank has announced a mandate for a Eu500m five year mortgage Pfandbrief that is expected to be launched tomorrow (Thursday), with the market otherwise quiet.

The German issuer this (Wednesday) morning mandated Commerzbank, DZ Bank, HSH Nordbank, Natixis and UniCredit to lead manage the deal.

A syndicate official at the leads put fair value for the new transaction at 12bp over, using as comparables an October 2018 trading at 10bp over, an April 2017 at 6bp over, and a June 16 at 1bp over.

A syndicate official away from the leads said that a reasonable level for a new HSH five year would be 15bp-16bp over, based on HSH and peer group outstandings.

Another syndicate banker at one of the leads said that “such a price would not be entirely wrong”.

The last benchmark covered bond issue from the bank was the aforementioned October 2018, a Eu500m five year deal that was priced in September 2013 at 18bp over mid-swaps and is trading at 10bp over.

“HSH did two last year and timing-wise the current supply situation suits,” he added.

Away from the German mandate, syndicate officials said that they are not expecting any other deals.