In brief: Volksbank Wien is set to launch its second euro benchmark soon, after today (Friday) announcing plans for a €500m no-grow 10 year mortgage covered bond, subject to market conditions.

Commerzbank, Deutsche, DZ, Erste and LBBW have the mandate, and Volksbank Wien said it will be available to host one-on-one investor calls on demand.

In February, the Austrian bank attracted €1.6bn of demand for its inaugural euro benchmark, a €500m no-grow seven year trade, which according to pre-announcement comparables circulated by the leads, was trading at 4bp over mid-swaps.

The last Austrian 10 year benchmark was a €500m deal for Bawag PSK on 25 September. That October 2029 issue was seen at plus 5bp by the leads, and other Austrian 10 year paper was trading between 3bp and 4.5bp.