ASB Finance Limited is preparing to issue a euro benchmark covered bond with a maturity of five to seven years next month, having announced a European roadshow today (Thursday). The deal would be only the third from New Zealand this year.

The New Zealand issuer announced this morning that it has mandated Barclays and Commerzbank to arrange a series of investor meetings commencing on Monday, 2 October and concluding Friday, 6 October. The roadshow will visit London, Helsinki/Copenhagen, the Netherlands, Frankfurt and Luxembourg.

A syndicate banker at one of the leads said the deal will probably to be launched the following week.

The deal would be ASB’s first euro benchmark covered bond in a year, with its last a Eu500m seven year in October 2016.

Only two benchmark covered bonds have been issued out of New Zealand this year, a Eu1bn five year for Westpac NZ in March and a Eu750m seven year for BNZ in June.

ASB parent Commonwealth Bank of Australia last issued a benchmark covered bond in April, a Eu750m seven year.