Raiffeisen-Landesbank Steiermark is set to launch a EUR500m 15 year covered bond tomorrow (Thursday), following a “helpful” break in issuance. Aktia will next week start marketing a euro benchmark covered bond, its first since 2015.

The awaited 15 year Austrian deal is set to be the first euro benchmark covered bond of the week and could be the last, according to syndicate bankers, with the pace of supply having slowed dramatically on the back of blackout periods and 1 May public holidays, after a rush of issuance in mid-April.

“It’s a very muted day and I wouldn’t expect much for this week,” said a syndicate banker at one of the leads. “As of now it looks as though we will have the floor to ourselves.”

Raiffeisen-Landesbank Steiermark announced on Friday a mandate for a EUR500m no-grow long dated covered bond, and on Monday held investor calls. Following yesterday’s public holiday, the Austrian bank and its leads DZ, Erste, LBBW, RBI and UniCredit today announced a mandate for a 15 year issue.

Syndicate bankers at the leads saw Raiffeisen-Landesbank Steiermark June 2028s at 3bp, mid, and also cited as comparables RLB NOe-Wien January 2028s at minus 1bp and Erste January 2028s at minus 4bp.

Aktia announced this morning that it has mandated BNP Paribas, LBBW, Natixis and Nordea for a European roadshow that will start next Wednesday and is expected to conclude on 17 May.

The deal will be the Finnish issuer’s first euro benchmark covered bond since March 2015, when it sold a EUR500m seven year.

Syndicate bankers said the break in supply, with the last euro benchmark covered bond a EUR500m seven year for Caja Rural de Navarra on Wednesday of last week, and an expected slower pace over the coming weeks should ease widening pressure on spreads.

“This rest will definitely be helpful for the market,” said one. “We hope that we have now hit a bottom and that there is no further widening in the offing, at least in the short term.”