Aareal Bank collected Eu150m via a three and half year floating rate note Pfandbrief issue today (Friday), while National bank of Australia tapped the US dollar covered bond market yesterday with a $1.75bn five year issue.

Aareal leads DZ Bank, Natixis and UniCredit priced the FRN at 13bp over three month Euribor. A lead syndicate banker said the “small placement” was sold mainly to German investors, “not surprisingly”.

The deal follows a similar transaction launched on Wednesday by fellow German Deutsche Pfandbriefbank, a Eu150m three year FRN tap that built on a Eu100m deal issued on Thursday of last week (21 February).

Aareal’s last benchmark was launched on 14 January, a Eu625m five year issue that was priced at 1bp over mid-swaps and attracted Eu1.2bn of orders.

A syndicate banker away from the leads noted there is a small but persistent demand for FRNs in Germany and they are usually prompted by reverse inquiry when the market is quiet.

National Australia Bank priced a $1.75bn (Eu1.34bn) five year issue yesterday (Thursday) at 42bp over mid-swaps, after leads Bank of America Merrill Lynch, Barclays, HSBC, NAB and RBC had set guidance in the 40bp to 43bp area.

A syndicate banker away from the leads said that the deal offered some 3bp premium in comparison to NAB’s outstanding 2017 issues.