PKO Bank Hipoteczny is set to issue a long five year euro benchmark tomorrow (Thursday) that could offer an attractive pick-up versus recent supply, while WL Bank and Deutsche Hypo are due with a EUR500m 10 year and a three year sterling benchmark, respectively.

PKO Bank Hipoteczny has mandated BNP Paribas, HSBC, LBBW and PKO Bank Polski to lead manage its new issue, which is expected to be launched tomorrow, subject to market conditions.

PKO June 2022s were seen at 15bp, mid, pre-announcement, January 2023s at 16bp, and August 2024s at 21.5bp.

Syndicate bankers away from the leads said the deal should offer an attractive pick-up versus recent supply. All euro benchmark covered bonds issued in March have been priced inside or flat to mid-swaps.

Westfälische Landschaft Bodenkreditbank (WL Bank) announced this afternoon that it has mandated BayernLB, Commerzbank, DZ, LBBW and UBS for its EUR500m no-grow mortgage Pfandbrief, which is also expected to be launched tomorrow.

Helaba priced a EUR500m 10 year issue at mid-swaps minus 14bp yesterday (Tuesday), and syndicate bankers away from WL Bank’s leads said the new issue will likely be priced at around the same level.

Syndicate bankers said another covered bond issuer is eyeing the market and could also issue a euro benchmark this week.

Deutsche Hypo’s sterling three year will be lead managed by Deutsche, HSBC, JP Morgan and Toronto-Dominion.

The last benchmark sterling Pfandbrief was a £450m three year for Deutsche Pfandbriefbank that was priced at 63bp over mid-swaps in November.