NordLB is aiming to launch an inaugural aircraft Pfandbrief in the first quarter of 2012, market conditions permitting, according to an official at the issuer, although The Covered Bond Report understands that it hopes to be out with a more traditional issue beforehand in the US market.

“The programme is ready, the documentation is ready and the cover pool has been set up,” said Thomas Cohrs, head of syndicate and origination, financial institutions and SSAs, at NordLB.

The programme has yet to be rated, but Cohrs said that the issuer expects a Aa2 rating from Moody’s to be forthcoming in December.

The issuer will then be in a position to tap the market with a planned Eu500m transaction in the first quarter of 2012, subject to market conditions, he said.

Such an issue would be the first benchmark aircraft Pfandbrief.

However, The Covered Bond Report understands that before launching the aircraft Pfandbrief, the issuer hopes to make its debut in the US dollar covered bond market with a benchmark backed by more traditional collateral.

Aircraft Pfandbriefe (Flugzeugpfandbriefe) are a fourth type of Pfandbrief permitted under Germany’s Pfandbrief Act, as per a 2009 amendment of the legislation.

NordLB in 2010 became the first German bank to receive an issuance licence for aircraft Pfandbriefe.

Airbus320-200: an example of an aircraft that meets the criteria for Flugzeugpfandbriefe