RLB NOe-Wien has mandated BayernLB, Commerzbank, Danske, DZ and Raiffeisenbank International for a European investor roadshow ahead of a potential euro-denominated Austrian mortgage-backed covered bond issue.

Raiffeisenlandesbank Niederösterreich-Wien (RLB NOe-Wein) will hold investor meetings from 6 to 9 October, after which the Austrian issuer may issue its second euro benchmark covered bond of the year, subject to market conditions, it was announced today (Tuesday).

RLB NOe-Wien tapped the market in February to print a Eu500m 10 year deal, with further benchmark Austrian supply not arriving until this month, when UniCredit Bank Austria and Erste Group Bank sold new issues on 1 and 2 September, respectively, before Bawag PSK printed a Eu500m five year on Tuesday of last week.

A syndicate official at one of RLB NOe-Wien’s leads said the previous deals showed the market to be open for Austrian issuers despite some concerns over the jurisdiction and exposure to Heta Asset Resolution, the wind-down entity of Hypo Alpe-Adria-Bank.

“Besides, the problem with Austria is in the public sector,” he said. “We are fundamentally comfortable with this deal as this Austrian mortgage market is a conservative as it gets and investors should have no problem getting involved.

“It is good RLB NOe-Wien are not imminent because the market is ugly,” he added, “but this is a good time to go on the road.”

Syndicate officials said that covered bond spreads had remained relatively stable today after substantial widening of 5bp to 7bp over the last week.

RLB NOe-Wein joins Hypo Tirol in the pipeline, with its Austrian peer having completed a roadshow yesterday (Monday).

A syndicate official at one of Hypo Tirol leads Barclays, Deutsche, Erste, LBBW and Société Générale said they are now assessing market conditions and investors’ feedback.

“With the markets as they are, you don’t need to do the textbook approach of finishing a roadshow and hitting the market the day after,” he said. “We want to catch a good window and if we have to wait one or two days more then we will, rather than rushing something into the market with the quarter-end approaching.”

Raiffeisenbank a.s, the Czech subsidiary of Austria’s RBI, is also in the pipeline with a euro-denominated deal, and is scheduled to hold investor calls today.

Banca Carige meanwhile yesterday (Monday) announced a mandate for a roadshow ending on 9 October, ahead of a potential euro benchmark deal.