Raiffeisen-Landesbank Steiermark is set to issue its first euro benchmark in over two years next week, having today (Friday) announced a mandate for a EUR500m deal expected to be launched after a public holiday on Tuesday.

The Austrian issuer announced this morning that it has mandated DZ, Erste, LBBW, RBI and UniCredit to lead manage the EUR500m no-grow long-dated issue.

Syndicate bankers at the leads said the deal is likely to be launched towards the middle of next week, with the issuer set to hold calls with investors on Monday, and after a public holiday in Germany and other European countries on Tuesday.

The last euro benchmark covered bond from Austria was a EUR750m eight year issue for Erste Group Bank that was priced at mid-swaps minus 3bp on 10 April and seen trading around re-offer ahead of today’s mandate announcement.

Raiffeisen-Landesbank Steiermark’s last euro benchmark covered bond was a EUR500m seven year in January 2016.

Compatriot Hypo Oberösterreich will on Wednesday start a three day European roadshow ahead of a sub-benchmark euro covered bond expected to have a maturity of seven to 10 years.