ABN Amro took advantage of a better market tone today (Thursday) to launch what is only the second Dutch euro benchmark covered bond of 2013 and the largest 10 year deal of the year, while RLB NÖ-Wien is pursuing a roadshow it put on hold in June.

The market tone was better today, according to syndicate officials, as the prospect of imminent foreign military intervention in Syria receded, with Asian equities posting gains overnight and European markets stable to positive this morning.

The improved sentiment has encouraged a raft of issuers to launch deals, said one, citing a SBAB deal in the euro senior unsecured market and activity in the corporate sector.

In covered bonds, ABN Amro Bank took advantage of the perceived issuance window to launch a 10 year trade, its first euro benchmark covered bond since late July 2012, with the prospect of competing supply in the coming weeks also said to have motivated the issuer to proceed with a deal.

Leads ABN Amro, Barclays, BNP Paribas, Deutsche Bank and UniCredit will price a Eu1.5bn deal at 37bp over mid-swaps, the tight end of guidance of the 38bp over area that followed initial price thoughts of the 40bp over area.

The order book stood at well over Eu2.3bn around 15 minutes before the leads were due to close the books, according to a lead syndicate official.

Syndicate bankers away from the deal were positive about it, highlighting how long it had been since there was any Dutch supply in covered bonds and that the 10 year maturity is also rare.

“It’s a nice trade – well done to them,” said one, adding that a Eu1.5bn deal size in 10 years was an achievement.

ABN Amro’s transaction is the largest 10 year-plus euro benchmark covered bond of 2013 so far, surpassing Eu1.25bn 10 year deals priced by HSBC SFH and ING Bank in April and May, respectively. A Eu500m Crédit Mutuel Arkéa Home Loans SFH deal from late June was the last 10 year euro benchmark covered bond.

Another syndicate official away from the leads said it was not surprising that ABN Amro’s deal had gone well, and that it will have appealed to yield-seeking investors.

With 10 year swap rates at around 2.18% early this morning ABN Amro’s deal was set to offer a yield of around 2.55%, according to a lead syndicate banker.

He noted that ABN Amro has sold three senior unsecured transactions this year with shorter dated maturities, and that the issuer turns to covered bonds for longer dated tenors.

A syndicate official away from ABN Amro’s deal said that the 40bp over area was a relatively defensive starting point, but overall he approved of the leads’ strategy and said a spread of 37bp over was a “more appropriate” level. He put the new issue premium at 3bp-4bp, saying that it was on the generous side, at least compared with new issue concessions for shorter dated deals.

Meanwhile, Raiffeisenlandesbank Niederösterreich-Wien (RLB NÖ-Wien) has dusted off plans for a roadshow that it had put on hold at the end of June in the wake of weakening market conditions over tapering fears. It announced today that it will go on a roadshow starting in the middle of September. The leads are the same as those on the original mandate: Crédit Agricole, DZ Bank, LBBW, JP Morgan and RLB NÖ-Wien. RLB NÖ-Wien’s peer Kommunekredit Austria yesterday announced a roadshow starting 4 September, with BNP Paribas, Deutsche Bank, DZ Bank, Erste Bank and LBBW.

Italy’s Banca Popolare dell’Emilia Romagna announced half year consolidated results on Tuesday, and according to a media report the chief executive officer, Luigi Odorici, said in a conference call that the issuer intends to go to the covered bond market before the end of the year.

Banca Popolare dell’Emilia Romagna has an obbligazioni bancarie garantite (OBG) programme but has not yet issued a benchmark covered bond. The bank had not responded to questions from The CBR by the time of publication.