The Covered Bond Report

News, analysis, data

In brief: Deutsche Pfandbriefbank preps Sonia debut

Deutsche Pfandbriefbank AG (pbb) is expected to launch its first Sonia-linked covered bond as early as tomorrow (Thursday), a three year sterling benchmark.

Pbb imageCredit Suisse, HSBC, NatWest and Nomura have the mandate.

The new issue will be pbb’s first benchmark covered bond since it launched a €750m eight year in January.

In June the German bank bought back €61m of a benchmark Pfandbrief.

The last new Sonia-linked covered bond was a Santander UK three year £1bn (€1.09bn) FRN in February.

Triple-A rated three year Sonia-linked UK covered bonds were trading in the mid to high 20s area, according to a lead banker, while the Sonia equivalent of pbb March 2023s was flattish to the bid side of where those UK names were trading.