Belfius and Natixis Pfandbriefbank are set to enter the covered bond market with 10 year deals tomorrow (Wednesday), continuing a recent run of long dated covered bond supply, with the German issuer set to make its public, sub-benchmark debut.

Following the reopening of the euro covered bond market on 22 August, seven of the eight benchmark covered bonds to have been issued have had maturities of 10 years, with a 12 year issue for Deutsche Bank on 24 August the only exception.

Belfius Bank announced a mandate this afternoon for a 10 year euro public sector Pandbrieven issue. The deal will be launched tomorrow, subject to market conditions, according to a syndicate official at one of leads Belfius, Citi, Deutsche, Nomura and RBS.

The deal will be the Belgian issuer’s second benchmark covered bond of the year, following a Eu500m six year issue in March.

Following investor meetings in Germany last week, Natixis Pfandbriefbank announced a mandate this afternoon for the Eu250m 10 year mortgage Pfandbrief, with leads DZ, Natixis and NordLB.

A syndicate official at one of the leads said the deal is expected to be launched tomorrow.

The leads cited as comparables 2026 paper from established German issuers BayernLB, MünchenerHyp, Deutsche Bank, WL Bank and Commerzbank quoted at minus 18bp-16bp, mid.

Natixis Pfandbriefbank has so far issued only private placements since it began operations in January 2013, with its largest deals to date two Eu100m issues.

Syndicate officials said tomorrow could be the last window for covered bond issuance this week, with an ECB meeting on Thursday having the potential to disrupt the market.