Helaba this (Thursday) morning doubled the size of a Eu500m May 2017 Pfandbrief first launched as part of a dual tranche transaction in May, ahead of an expected resumption of new benchmark supply expected for next week that bankers said could include a long dated core deal.

The tap for Landesbank Hessen-Thüringen (Helaba) is the first benchmark covered bond supply since 29 July, when Italy’s Banca Popolare di Sondrio priced a Eu500m five year inaugural issue, although this departed from benchmark norms in being sole-led, by BNP Paribas. Deutsche Pfandbriefbank (pbb) priced a Eu175m increase of a March 2019 mortgage Pfandbrief on Monday, but this was a retention trade for which there was no bookbuilding. The last new benchmark covered bond was a Eu500m five year Pfandbrief for Deutsche Hypothekenbank on 21 July, which was priced at 1bp over mid-swaps.

Market participants are expecting the first new benchmark supply since the summer break to emerge next week, and according to some syndicate officials a long dated, likely 10 year deal from a core issuer is under consideration.

For Helaba’s increase, leads BNP Paribas, Citi, Deutsche, Helaba, HSBC, Société Générale, UBS and UniCredit marketed a Eu250m minimum transaction at guidance of the 9bp through mid-swaps area. They collected more than Eu800m of orders for the increase, which they sized at Eu500m and priced at 10bp through. At that spread, the tap came 3bp tighter than where the initial tranche, a Eu500m 0.375% issue, was priced in May.

“It looked good,” said a syndicate official away from the leads. “They doubled the size, and there’s just been so little supply and spreads have done well.”

Today’s increase is the second time that Helaba has revisited the two part transaction launched on 20 May of which the three year deal was one part – in the middle of July it doubled a seven year tranche via a Eu500m increase.