The primary market was quiet today (Thursday), after Caja Madrid and OP Mortgage Bank wrapped up new issues yesterday in euros, and Royal Bank of Canada launched the largest and longest issue yet in Canadian dollars.

NIBC finished a roadshow with leads LBBW, Natixis, NIBC and RBS on Tuesday and is considered likely to approach the market for a new issue. Westpac NZ is also said to be considering reviving its euro issuance plans, after postponing a deal in February.

Caja Madrid sized its three year cédulas at Eu750m, larger than the Eu500m minimum targeted. The deal was priced by leads Caja Madrid, Credit Suisse, HSBC, Natixis and UniCredit at 240bp over mid-swaps, the middle of 240bp area guidance.

“The issuer priced it right,” said a syndicate official at one of the leads. “They didn’t push pricing at all and got Eu750m, which is a decent size.”

OP Mortgage Bank priced its Eu1bn five year benchmark at 35bp over mid-swaps, the middle of guidance, via leads Deutsche Bank, DZ Bank, Pohjola and UBS. The deal generated orders of Eu1.3bn, comprising 75 accounts.

“Bookbuilding went smoothly,” said a syndicate official at one of the leads. “The Eu1.3bn allowed us to comfortably price a Eu1bn trade. No-one can be disappointed with this given market conditions.”

One market participant said that a tighter level might have been expected in more favourable market conditions.

“The market wouldn’t allow it,” he added, “and OP is a prudent issuer and acknowledged that.”

Nordics accounts were allocated 41%, Germany 33%, Switzerland 7%, eastern Europe 6%, the Benelux 5%, the UK 4%, France 3%, and others 1%. Fund managers took 45%, banks 33%, central banks 18%, insurance companies and pension funds 3.5%, and others 0.5%.

Royal Bank of Canada yesterday sold the largest and longest dated domestic Canadian covered bond, a C$1.1bn seven year issue. The deal was RBC’s third in Canadian dollars, which remain the sole preserve of the bank.

The self-led new issue was priced at 87bp over mid-swaps after guidance of the 88bp area. One banker said that he was encouraged by the new issue, which comes after five year deals for RBC in 2009 and 2010.

RBC remains the only Canadian bank to have issued covered bonds in its local currency. Canadian banks have recently focused on the US dollar market, with four launching 144A benchmarks this year.

Following the launch of DnB Nor Boligkreditt’s second $2bn five year benchmark, on Tuesday, Thor Tellefsen, senior vice president and head of long term funding at DnB Nor, told The Covered Bond Report that he was pleased with the new issue.

“We are the only Nordic issuer that has been able to twice issue $2bn five year deals, which is very good,” he said. “And while there are some key investors in the US that participated in both transactions, we saw a widening of the number of smaller investors that were involved, with some 55 to 60 accounts in the book and more than 90% of the bonds sold in the US.”

The issue was priced at 66bp over mid-swaps by leads Barclays Capital, Bank of America Merrill Lynch, JP Morgan and Morgan Stanley.

“The funding we achieved is reasonably in line with euro levels,” said Tellefsen. “In dollar terms we came 2bp inside the level at which our first five year dollar issue came, but the basis swap was not as favourable.”

Tellefsen said that the issuer expects to sell two dollar benchmarks per year, focusing on the five year part of the curve.

“For us it doesn’t make sense to do anything shorter,” he said. “We came with this issue now as we said that we would come again six months after our first deal, and it made sense to issue around the conference last week.

“We expect to build a curve around five years, with deals six months apart.”

The primary market was quiet today (Thursday), after Caja Madrid and OP Mortgage Bank wrapped up new issues yesterday in euros, and Royal Bank of Canada launched the largest and longest issue yet in Canadian dollars.

NIBC finished a roadshow with leads LBBW, Natixis, NIBC and RBS on Tuesday and is considered likely to approach the market for a new issue. Westpac NZ is also said to be considering reviving its euro issuance plans, after postponing a deal in February.

Caja Madrid sized its three year cédulas at Eu750m, larger than the Eu500m minimum targeted. The deal was priced by leads Caja Madrid, Credit Suisse, HSBC, Natixis and UniCredit at 240bp over mid-swaps, the middle of 240bp area guidance.

“The issuer priced it right,” said a syndicate official at one of the leads. “They didn’t push pricing at all and got Eu750m, which is a decent size.”

OP Mortgage Bank priced its Eu1bn five year benchmark at 35bp over mid-swaps, the middle of guidance, via leads Deutsche Bank, DZ Bank, Pohjola and UBS. The deal generated orders of Eu1.3bn, comprising 75 accounts.

“Bookbuilding went smoothly,” said a syndicate official at one of the leads. “The Eu1.3bn allowed us to comfortably price a Eu1bn trade. No-one can be disappointed with this given market conditions.”

One market participant said that a tighter level might have been expected in more favourable market conditions.

“The market wouldn’t allow it,” he added, “and OP is a prudent issuer and acknowledged that.”

Nordics accounts were allocated 41%, Germany 33%, Switzerland 7%, eastern Europe 6%, the Benelux 5%, the UK 4%, France 3%, and others 1%. Fund managers took 45%, banks 33%, central banks 18%, insurance companies and pension funds 3.5%, and others 0.5%.

Royal Bank of Canada yesterday sold the largest and longest dated domestic Canadian covered bond, a C$1.1bn seven year issue. The deal was RBC’s third in Canadian dollars, which remain the sole preserve of the bank.

The self-led new issue was priced at 87bp over mid-swaps after guidance of the 88bp area. One banker said that he was encouraged by the new issue, which comes after five year deals for RBC in 2009 and 2010.

RBC remains the only Canadian bank to have issued covered bonds in its local currency. Canadian banks have recently focused on the US dollar market, with four launching 144A benchmarks this year.

Following the launch of DnB Nor Boligkreditt’s second $2bn five year benchmark, on Tuesday, Thor Tellefsen, senior vice president and head of long term funding at DnB Nor, told The Covered Bond Report that he was pleased with the new issue.

“We are the only Nordic issuer that has been able to twice issue $2bn five year deals, which is very good,” he said. “And while there are some key investors in the US that participated in both transactions, we saw a widening of the number of smaller investors that were involved, with some 55 to 60 accounts in the book and more than 90% of the bonds sold in the US.”

The issue was priced at 66bp over mid-swaps by leads Barclays Capital, Bank of America Merrill Lynch, JP Morgan and Morgan Stanley.

“The funding we achieved is reasonably in line with euro levels,” said Tellefsen. “In dollar terms we came 2bp inside the level at which our first five year dollar issue came, but the basis swap was not as favourable.”

Tellefsen said that the issuer expects to sell two dollar benchmarks per year, focusing on the five year part of the curve.

“For us it doesn’t make sense to do anything shorter,” he said. “We came with this issue now as we said that we would come again six months after our first deal, and it made sense to issue around the conference last week.

“We expect to build a curve around five years, with deals six months apart.”