ANZ could issue its first euro benchmark covered bond in almost two years next month, having announced a mandate this (Monday) afternoon for a covered bond and/or a senior unsecured issue. DG Hyp is meanwhile set to sell a Eu500m long eight year Pfandbrief as early as tomorrow.

ANZ today announced a series of European investor meetings from 7 to 10 November, after which it may launch a covered bond and/or senior unsecured euro benchmark issue. ANZ, BNP and UBS have the mandate.

“They will be looking at both options and will be targeting both rates and credit investors,” said a syndicate banker at one of the leads. “It is fairly rare to announce an either/or mandate, but it has been done before.”

National Australia Bank launched a dual tranche, covered bond and senior unsecured, deal in November 2015.

ANZ’s last euro benchmark covered bond was a Eu1bn (A$1.43bn) November 2019 issue in 2014. It has since sold a $1.25bn May 2020 issue in May 2015 and a £500m February 2019 issue in February of this year.

On September 22 ANZ sold a Eu1bn 10 year senior unsecured benchmark at 50bp over mid-swaps.

DG Hypothekenbank announced a mandate this afternoon for a Eu500m no-grow long eight year mortgage Pfandbrief. A syndicate banker at one of leads ABN Amro, Deutsche, DZ Bank, Helaba and Natixis said the deal could be launched as early as tomorrow.

The deal would be DG Hyp’s third benchmark covered bond of the year, following a Eu500m September 2022 issue in February and a Eu500m April 2026 issue in May.