New issues for UniCredit SpA and SpareBank 1 today (Tuesday) showed that solid transactions are possible despite a weaker market tone, although new issue premiums are back on the agenda, said bankers. RLB Steiermark has mandated, with a 15 year expected.

Italy’s UniCredit was first out of the blocks this morning, and will price a Eu1bn no-grow long five year at 85bp over mid-swaps via leads BayernLB, Crédit Agricole, Commerzbank, ING, Société Générale and UniCredit. Some Eu1.6bn of orders were placed for the deal, with “well over” 130 accounts participating, said a lead syndicate official.

The deal was initially pitched at the 90bp over area before guidance was set at the 88bp over area. At 85bp over, the obbligazioni bancarie garantite (OBG) issue is coming roughly between 110bp and 120bp through Italian government bonds, according to a lead syndicate banker. This is the first time that an OBG has come with a triple-digit spread inside BTPs, he said, adding that Italian covered bonds have tightened and that government bonds widened recently.

A banker away from the leads said that it is the first peripheral covered bond since August 2010 to come with a double-digit rather than triple-digit spread over mid-swaps, the last such deal having been a five year for UniCredit, too.

Norway’s SpareBank 1 Boligkreditt opened order books shortly after UniCredit, for a Eu1bn no-grow seven year. Leads Deutsche Bank, LBBW, Natixis and UniCredit will price the deal at 18bp over, the tight end of guidance of 18bp-19bp over that was revised from the 20bp over area, which is also where initial price thoughts were set.

The final order book stood at Eu1.5bn, according to a lead syndicate official, with all orders good at re-offer.

“It was a successful deal,” he said.

A syndicate banker away from the leads said that he expected a tighter level, in the low teens.

Austria’s Raiffeisen-Landesbank Steiermark, meanwhile, has mandated for a long dated euro benchmark, its first benchmark backed by mortgages after a public sector debut in September 2011. The new deal is expected to be launched soon, most likely with a 15 year maturity, which could make it the longest ever Austrian benchmark.

A syndicate banker away from the leads mentioned the low 30s in connection with the new issue project. Crédit Agricole, Deutsche Bank, DZ Bank, LBBW and UniCredit have the mandate.

The flurry of primary market-related activity, with several other issuers on or planning roadshows, comes amid more fragile global market conditions in the past week, although syndicate officials said sentiment was slightly better today.

The market is open and capable of absorbing new issues, they said, albeit with lower levels of oversubscription and a somewhat more cautious and generous approach to pricing.

“The market has the capacity to take down primary market supply, but the days of pricing flat, with a small concession or through fair value are gone,” said one. “You need to pay up.”

Another echoed this assessment, saying that price sensitivity is in evidence and that new issue premiums are clearly needed, but that this can be easily managed.

“If you take that into consideration then there is enough liquidity out there,” he said. “Deals are working, it’s just that coming flat to the curve isn’t on the cards anymore.”

A lead syndicate official on UniCredit’s OBG said it offered a new issue concession of some 2bp-3bp. A banker away from SpareBank 1’s deal said that it came with a new issue premium of around 5bp.

He attributed the active primary market to issuers realising that there is little spread tightening potential left, and therefore deciding to avail themselves of execution opportunities when they arise rather than wait.

“Plus, what’s a little new issue premium?” he asked. “The stock markets have showed that volatility can come back quickly, and there are a range of arguments why volatility could become a feature again.”

The eventual onset of summer holidays will also be influencing decisions about deals, he added.

Deutsche Pfandbriefbank (pbb) tapped a Eu250m April 2016 public sector Pfandbrief FRN today for Eu150m, taking the deal to Eu400m. The spread was three month Euribor plus 18bp. DZ, JP Morgan, Natixis and UniCredit were leads.