Commonwealth Bank of Australia and Westpac NZ joined the covered bond pipeline today (Monday), announcing roadshows that will commence next week ahead of potential euro-denominated issues, although the former is also considering a senior unsecured transaction.

Westpac Securities NZ announced this morning that it has mandated HSBC to arrange a series of European investor meetings commencing next Monday (27 March). It said a euro-denominated Reg S covered bond with a maturity of five to seven years may follow, subject to market conditions.

The deal is likely to be the first benchmark covered bond from New Zealand since October, when ASB Finance sold a Eu500m (NZ$765m) seven year issue.

Westpac NZ has sold one euro benchmark covered bond in each of the last three years, its last a Eu750m five year issue in June. Its Australian parent, Westpac, last sold a euro benchmark covered bond in July 2015, a Eu1bn six year, and has since sold two US dollar-denominated benchmarks, the last in February 2016.

Commonwealth Bank of Australia (CBA)                later this morning announced a mandate for a European roadshow commencing next Monday and concluding on Friday (31 March) ahead of a potential euro benchmark covered bond and/or senior unsecured transaction. UBS has the roadshow mandate.

CBA’s last euro benchmark covered bond was a Eu1.25bn (A$1.74bn) 10 year in July 2016. It has issued one non-domestic benchmark already this year, a £350m (A$563m, Eu404m) December 2021 issue in January. The last euro benchmark from Australia came in November, when ANZ sold a Eu750m seven year.

No benchmark covered bonds hit the screens today, and bankers noted that issuance was instead focussed in the senior unsecured market, where there was a range of deals in euros and dollars.

“It appears that today has been picked to be a senior issuance day,” said a syndicate banker. “But I would be very surprised if we don’t see at least some covered bond issuance later in the week.

PKO Bank Hipoteczny held a European roadshow last week, ahead of an expected euro benchmark covered bond issue. A banker at one of leads LBBW, PKO Bank Polski, Santander, SG and UniCredit said the deal could emerge in the coming days.

PKO Bank Hipoteczny, the specialist mortgage bank subsidiary of PKO Bank Polski, sold the first and to date only euro benchmark covered bond from Poland in October, a Eu500m short six year issue.