Aareal is set to launch a three year Eurodollar covered bond tomorrow (Wednesday), its second US dollar-denominated benchmark, after having announced a mandate today.

Aareal Bank announced this (Tuesday) morning that it had mandated Citi, Credit Suisse, Goldman Sachs, HSBC and LBBW for the US dollar-denominated Reg S mortgage Pfandbrief. A syndicate banker at one of the leads said the deal is expected to be launched tomorrow.

The deal will be Aareal’s second benchmark Pfandbrief in the currency, following a $500m (Eu420m) four year debut in March 2015. There have been two US dollar benchmarks from German issuers this year, the most recent a $600m three year from Deutsche Pfandbriefbank in April.

Syndicate bankers at the leads saw Aareal’s US dollar April 2019s at 18bp, mid, pre-announcement, and also cited as comparables triple-A rated US dollar outstandings from other Pfandbriefe issuers. They saw LBBW $650m May 2019s at 18bp and January 2020s at 29bp, BayernLB August 2019s at 28bp, and Helaba August 2020s at 38bp.