Austria

Hypo Investmentbank is eyeing a Eu1bn maximum deal at the short end of the curve for its inaugural jumbo Austrian Pfandbrief, the bank’s head of funding told The Cover ahead of its roadshow later this month.

Hypo Investmentbank AG yesterday (Thursday) mandated Barclays Capital, BNP Paribas and Dresdner Kleinwort to launch the Austrian bank’s inaugural jumbo public sector Pfandbrief.

*Excludes German, French, Spanish and Nordic issuance.

Kommunalkredit Austria priced a Eu1bn four year covered bond at mid-swaps flat this morning, as expected, but while the transaction shows how the most sought after names can avoid the worst of the spread widening, questions remain over what whether anything can be printed any tighter.

Kommunalkredit Austria showed the gulf between public sector covered bonds from established, legislative jurisdictions and the mainly structured mortgage issuance this week by coming out with price guidance of mid-swaps flat for a four year deal via Citi, Dresdner Kleinwort and UBS today.

Erste Bank launched its first euro denominated public sector backed covered bond in the international market yesterday (Thursday), a two year floating rate note that was increased from Eu100m to Eu150m and then Eu160m on the back of strong demand.