MünchenerHyp is expected to launch a US dollar-denominated three year covered bond tomorrow (Tuesday), after announcing a mandate today, while Deutsche Pfandbriefbank (pbb) tapped by £100m (Eu117m) a December 2019 mortgage Pfandbrief this morning.

Münchener Hypothekenbank announced the mandate this (Monday) afternoon for the Reg S mortgage Pfandbrief, with leads Barclays, Deutsche, DZ, Goldman Sachs and Nomura. The deal is likely to be launched tomorrow, according to a syndicate official at one of the leads.

The deal will be MünchenerHyp’s first benchmark US dollar covered bond since 2012, when it sold a $500m (Eu452m) July 2015 issue. It will also be only the second dollar-denominated benchmark from a German issuer this year, following a $650m three year issue for LBBW on 18 May.

Syndicate officials at the leads cited as comparables LBBW March 2018s and May 2019s at 34bp and 41bp, mid, respectively. They also cited BayernLB April 2018s at 37bp.

Deutsche Pfandbriefbank leads Deka and Nomura reopened its December 2019s this morning with guidance of 92bp “the number”, before the spread was then set at 92bp and the deal tapped by £100m, on the back of books over £100m.

The original £250m issue was printed in November 2012, and was previously tapped to £375m, meaning the deal is now £475m.

A syndicate official at one of the leads said the deal had been priced through the bid side of the issuer’s curve.

“It’s a very strong result,” said the lead syndicate official. “The market for sterling paper is pretty robust.”

Bankers noted that demand for sterling-denominated covered bond paper has been strong since the UK’s vote to leave the EU on 23 June, with supply having been limited in the run-up to the referendum.

CIBC increased a May 2019 floating rate note from £250m to £500m on Friday, having received reverse enquires, after Santander UK had reopened the market with a £500m three year FRN on 1 July.