Deutsche Hypo is expected to launch a Eu500m eight year Pfandbrief tomorrow (Wednesday), having mandated leads today, in what could be the last window for euro issuance this week, given public holidays in Germany on Thursday.

The deal will be Deutsche Hypothekenbank’s first new benchmark Pfandbrief since May 2016, when it sold a Eu750m eight year issue.

The German issuer announced today (Tuesday) that it has mandated Deutsche Bank, DZ Bank, HSBC, NordLB and UniCredit to lead manage the new Eu500m no-grow mortgage-backed issue. Syndicate bankers at the leads said the deal will be launched tomorrow, subject to market conditions.

The leads cited as comparables Deutsche Hypo April 2022s and February 2023s at minus 14bp, mid, pre-announcement, and May 2024s – its longest dated outstanding – at minus 15bp mid. They also saw Berlin Hyp 2023-2025 paper trading between minus 16bp and 15bp, and DG Hypothekenbank December 2024s and March 2026s between minus 17bp and 16bp.

On Thursday, some regions of Germany will mark Corpus Christi, and bankers said the market could therefore close for the week by end of business tomorrow.

“With SEB out today (see separate article) and Deutsche Hypo lined up for tomorrow, issuers see this week as a good opportunity to tap the market in a more friendly environment,” said a syndicate banker, “but if you are not already done by Wednesday, you may have to revisit your project next week.”