Danske Bank launched a Eu1bn no-grow seven year deal today (Thursday) that marked the third seven year issue of the week and the issuer’s return to the euro benchmark covered bond market after almost two years of absence.

Leads Barclays, Crédit Agricole, Danske, Santander and UniCredit set initial price thoughts in the mid/low 30s over mid-swaps area, guidance in the 32bp over area, and tightened the spread to re-offer the deal at 30bp over. The bonds are backed by the issuer’s international (“I”) cover pool, comprising Swedish (54%) and Norwegian (46%) residential mortgages.

“The deal was rather run-of-the-mill and where it should be, so a good transaction overall,” said a syndicate banker away from the leads.

He added that the pricing represented a good result for Danske, especially because the market was not in a risk-on mode today.

Another syndicate banker away from the leads said that the pricing looked fair considering Danske’s secondary curve.

He said that the deal seemed to be going well, with the order book approaching Eu1.5bn half an hour before the order books were due to be closed.

“The lack of supply of the past two weeks definitely helped,” he added.

The transaction marked Danske’s return to the public euro covered bond market after an absence of almost two years. The last deal placed by the Danish issuer dates back to 2 March 2011, when Danske priced a Eu1bn five year transaction. The issuer concentrated on the senior unsecured market last year, and was active in covered bonds outside of the euro market and in private placements.

Danske’s new seven year deal came after a Eu1bn seven year issue for Société Générale SFH yesterday (Wednesday). That deal attracted Eu2bn of orders and was priced at 33bp over mid-swaps. (See separate article for more.)

Danske’s deal also came after another Nordic issuer, SEB, placed a Eu1bn seven year issue on Monday at 15bp over on the back of more than Eu2bn of orders.

A syndicate banker away from the Danske leads said that the choice of maturity was appropriate.

“You target what is in demand in the market,” he said.