WL Bank tapped a Eu625m February 2026 Pfandbrief by Eu250m today (Tuesday) after having received Eu400m of demand and tightening the spread to offer no new issue premium, according to bankers, becoming the latest German bank to upsize at the long end amid a highly supportive market.

Since the market reopened on 4 July, German issuers MünchenerHyp, Commerzbank and Deutsche Hypo have each tapped outstanding euro Pfandbriefe, while only two new benchmarks have been brought to market – a Commerzbank Eu750m eight year on 4 July and a CIBC Eu1.25bn six year yesterday (Monday).

“While the market is extremely supportive but funding needs modest, these opportunistic taps are proving very useful,” said a syndicate official away from the deal.

Westfälische Landschaft Bodenkreditbank  (WL Bank) leads Deka, DZ, NordLB, UniCredit and WGZ reopened the Eu625m February 2026 mortgage Pfandbrief this morning for a tap size of Eu125m, with guidance of the 8bp through mid-swaps area. The spread was then set at 10bp through, and the deal increased to Eu250m, on the back of Eu400m of orders.

The tap takes the size of the deal to Eu875m. The original issue was sold in January with a size of Eu500m, at 1bp over mid-swaps.

Bankers said the tap offered no new issue premium, seeing the bond trading pre-announcement at minus 10bp, mid, and noted this was in line with the previous Pfandbrief taps.

“It’s another impressive result,” said a banker away from the deal. “With the market so undersupplied, and relative value strongly in favour of Pfandbriefe, these guys can practically enlarge their deals for free.”

The tap yielded 0.177%. WL followed MünchenerHyp and Commerzbank in tapping the 2026 maturity, with bankers having noted that the 10 year part of the curve allows issuers to still offer a positive yield.

Syndicate officials added that in spite of the strong demand for WL Bank’s tap and for CIBC’s negative yielding benchmark yesterday (see separate article), they expect the flow of supply to remain slow this week, with many market participants now on holiday, and with an ECB meeting on Thursday likely to divert attention from the primary market.

“In terms of benchmarks, I think we’ll only see one or two more this summer, and tomorrow might be the last window of this week,” said one.

ECB figures released yesterday afternoon show that settled and outstanding purchases under the third covered bond purchase programme increased Eu1.407bn, from Eu184.100bn to Eu185.507bn, in the week to last Friday.

In the previous reporting period the CBPP3 portfolio grew by a net Eu530m, although gross buying was Eu730m, given Eu200m of redemptions. Portfolio redemption figures that will give a clearer picture of CBPP3’s development last week are published this afternoon.