The primary market is expected to remain quiet after last week being bereft of new euro benchmarks for the first time since the end of the first quarter, with only DekaBank issuing a €250m five year sub-benchmark, although Sparkasse Hannover meanwhile sold a €50m debut green Pfandbrief.

The last new euro benchmarks issued were €750m DZ Hyp and €1bn Crédit Mutuel covered bonds on Thursday of the week before last (8 July), meaning a blank week for the first time since the pre-Easter week of March 29. LBBW analysts on Friday noted that in 2020 supply ceased on 8 July, before being reopened on 25 August.

“The issue pipeline is still empty, just as it was last week,” they added. “The next few days will show whether this trading week heralded the early start of the summer break or another issuer will still be active in the covered bond market.”

A syndicate banker said he expects the former to be the case.

“I would believe that this will be a classic summer break,” he said. “I would not expect people to be back in size until the end of August.

“Deka ended the show for the next four weeks, if not five.”

DekaBank’s sub-benchmark constituted the only syndicated euro covered bond issuance. Following initial guidance of the 3bp over mid-swaps area and revised guidance of 1bp+/-1bp, will price in range, leads DekaBank, DZ and Erste priced the €250m no-grow July 2026 issue, rated Aaa, at mid-swaps flat on the back of a demand good at re-offer above €650m, including €25m joint lead manager interest, and comprising 25 accounts.

A syndicate banker at one of the leads said while sub-benchmarks always encounter a more limited investor universe, DekaBank is an attractive name and the deal went well.

“We left a basis point or so on the table, which was a prudent way of approaching this market,” he added. “All in all, it was a good end to the pre-summer supply.”

Sparkasse Hannover issued its €50m 10 year green mortgage Pfandbrief debut on Wednesday, with green buildings as the use of proceeds.

“This issue shows the capabilities of the Sparkasse as a Pfandbrief institute and is at the same time consistent with the further development of our sustainability activities,” said Volker Alt, CEO of Sparkasse Hannover. “Sparkasse Hannover is convinced of the importance of Green Pfandbriefe as an attractive refinancing instrument.”

The savings bank’s green bond framework has a second party opinion from Imug, which affirmed alignment with the Green Bond Principles, and its issuance also meets the Green Pfandbrief minimum standards established by the Association of German Pfandbrief Banks (vdp). Its framework also allows for senior unsecured issuance, and other use of proceeds categories are renewable energy, clean transport, and sustainable (waste) water management.