Terra opted to go for its second jumbo-sized deal today (Wednesday) after meeting with orders “well north” of Eu1bn for a 10 year deal, while Deutsche Pfandbriefbank (pbb) priced a Eu500m issue off Eu550m-plus orders, according to lead bankers. CFF has mandated a tap.

Pbb leads Barclays, BNP Paribas, Commerzbank, NordLB and UniCredit went out with initial price thoughts of the high single-digits before setting guidance at the 8bp over area, and will price a Eu500m four year no-grow mortgage issue at 8bp over.

A lead syndicate official said that the deal is coming flat to the issuer’s mid curve and 5bp inside its bid curve. The deal went very quickly, according to another lead syndicate banker, in line with expectations.

Some syndicate bankers away from the deal suggested the oversubscription was meagre, and the lead syndicate official acknowledged this but said that the deal was fuelled by an enduring investor base interested in the issuer and that the order book was of a good quality.

The pricing was in line with re-offer spreads for other Pfandbriefe sold so far this year, he added, and expectations based on secondary market levels even if activity is limited there.

“It confirms that Pfandbriefe do not need big premiums,” he said.

A syndicate official away from the deal said that the guidance “did not seem unreasonable” given secondary market levels, with a July 2017 pbb issue at around 6bp over, while another said that the level on pbb’s deal looked tight.

The first said that pbb had recently done a senior unsecured issue and was an active issuer last year, suggesting that this could perhaps explain how today’s Pfandbrief fared.

Pbb sold a Eu500m three-and-a-half year senior deal at 138bp over on Thursday, and last year raised Eu1.7bn via three new benchmark Pfandbriefe and one tap.

Its new issue today is the shortest dated Pfandbrief to have hit the market so far this year, with three others having been five year issues and one a seven year.

Norway’s Terra BoligKreditt will launch a Eu1bn 10 year at 43bp today after meeting with orders clearly exceeding Eu1bn, according to a syndicate banker at one of the leads – BNP Paribas, Commerzbank, Natixis and UniCredit.

Initial price thoughts were set in the low to mid-40s and guidance at 42bp-45bp over.

A syndicate banker away from the leads noted that the deal was one of the only benchmark covered bonds this year not to have come at the tight end of guidance and that demand did not exceed the deal size by very much.

Asked about oversubscription being meagre in light of the deal size, a lead syndicate banker played this down, noting that orders were, as communicated, “well north” of Eu1bn.

Today’s deal is Terra’s second ever jumbo after it sold a Eu1bn five year on 30 October. DNB Boligkreditt sold the last Norwegian 10 year benchmark, a Eu1bn issue at 33bp over on 14 November.

Compagnie de Financement Foncier has mandated Barclays, BNP Paribas, JP Morgan, Natixis, and RBS to lead manage a tap of the issuer’s November 2022 obligations foncières. The transaction is understood to be likely to take place tomorrow (Thursday).