Berlin Hyp is set to sell its second green Pfandbrief tomorrow (Wednesday), having today announced a mandate for a Eu500m long six year issue. Issuance is expected to be limited this week with tomorrow potentially the only window, ahead of an ECB meeting and the UK election. BNZ has announced a roadshow for a potential euro benchmark.

The German bank’s deal has been awaited since it announced a series of investor meetings on 16 May, with Commerzbank, Crédit Agricole, JP Morgan, LBBW and UniCredit mandated as leads. The European roadshow concluded on Friday.

Following public holidays across Europe yesterday (Monday), Berlin Hyp and its leads then announced a mandate for the Eu500m no-grow long six year Pfandbrief today. A syndicate banker at one of the leads said the deal will be issued tomorrow, subject to market conditions.

Berlin Hyp sold the inaugural and to date only benchmark green covered bond in April 2015, a Eu500m seven year. The May 2022 issue was seen trading at around minus 15bp, mid, this morning. Bankers noted that the issuer’s curve is relatively flat, with its standard 2024-2025 Pfandbriefe trading at around the same level as the outstanding green Pfandbrief.

Tomorrow is expected to be the only window for euro benchmark issuance this week, with attention to turn to an ECB governing council meeting and the UK general election on Thursday. Bankers were unconvinced that any other deals will emerge, given that investor appetite seemed more modest last week, after heavy supply in May and some widening at the long end.

“If there are any other trades besides Berlin Hyp this week, they will be of an opportunistic nature,” said a syndicate banker, “but I don’t feel that the current market presents very many opportunities.”

Bank of New Zealand announced today that it has mandated Deutsche Bank and National Australia Bank to arrange a European roadshow commencing 19 June, after which a benchmark euro-denominated covered bond or a senior unsecured transaction may follow.

BNZ’s last euro benchmark covered bond was a Eu750m five year in June 2016.