Hypo Landesbank Vorarlberg today (Tuesday) tapped by Eu200m a Eu300m February 2025 issue, building a granular Eu250m book, but bankers said takeaways for the issuer’s peers are limited in spite of the deal’s positive reception.

Leads DZ, Erste and LBBW launched the Eu200m no-grow tap for Vorarlberger Landes- und Hypothekenbank (Hypo Landesbank Vorarlberg) with guidance of the 23bp over mid-swaps area, before fixing the spread at 22bp with the book “well over” Eu200m. The book was then closed at 11:00 CET, with around Eu250m of orders from around 30 accounts.

“It is never easy with an Austrian deal, with the shyness on the investor side, but this was a very pleasant response,” said a lead syndicate official.

He said the granularity of the order book was a highlight of the deal, citing good participation from insurance companies and asset managers.

Banks took 33.8% of the deal, central banks 32.5%, insurance companies 21.2% and asset managers 12.5%. Accounts from Austria were allocated 62%, Germany 35.3%, the UK 1.2%, France 1.0%, and Switzerland 0.5%.

The original mortgage-backed sub-benchmark issue was priced at 7bp in February and was trading pre-announcement at 13bp, bid, according to the lead syndicate official.

“With new issues from other core jurisdictions landing with premiums of 6bp-8bp, a 9bp premium for an Austrian name at the longer end is a good result,” said the syndicate official.

However, the lead syndicate official said takeaways from the deal’s success were limited for other issuers from the Austrian Hypo banks.

“This is the best Hypo name out of Austria,” he said, “and I still don’t expect there to be overwhelming demand for Austrian Hypos soon.”

A euro benchmark covered bond from Hypo Tirol has been anticipated since the Austrian issuer completed a roadshow at the end of September.