Commonwealth Bank of Australia is expected to launch its first public Australian dollar-denominated covered bond in two years this week, having today (Wednesday) announced a mandate for a potential deal comprising fixed and floating, and five and 10 year tranches.

Following an investor call on Friday, CBA announced the self-led deal after the Australian open today, and said the trade will be divided into multiple tranches to include any or all of: a floating rate five year tranche, a fixed rate five year tranche and a 10 year fixed rate tranche.

The mandate provided initial price thoughts of three month BBSW plus the mid-to-high 80s and swaps plus the mid-to-high 80s for the floating and fixed rate five year tranches, respectively, and swaps plus the low 100s for the 10 year tranche.

CBA announced that the transaction is expected to be launched “as early as this week”, subject to market conditions. Bankers away from the deal suggested that it is likely to be tomorrow’s (Thursday’s) business.

CBA’s last public domestic issuance was in 2014, when it sold three 2024 issues of A$125m (Eu86.9m) or less. Its only benchmark Australian dollar covered bond issue to date came in January 2012, when it sold a A$3.5bn January 2017 dual tranche issue – comprising a A$2bn fixed rate tranche and a A$1.5bn floating rate note.