SEB is set to follow Swedish peer Stadshypotek to the covered bond market with a new seven year euro benchmark after having today (Friday) mandated leads, a day after it announced third quarter results.

Commerzbank, Crédit Agricole, Deutsche, SEB and UBS are joint bookrunners.

Just as Stadshypotek entered the market in the wake of better than expected results, Skandinaviska Enskilda Banken (SEB) will launch its new issue after having announced strong results yesterday. Operating profits came in 20% higher than a year previously and the performance was well received by analysts.

Stadshypotek on Wednesday achieved the tightest pricing of a non-German seven year benchmark since 2007, according to a syndicate official at one of its leads, and SEB is also expected to find conditions favourable.

“Stadshypotek has sent out a very strong signal for its peers to follow,” said a syndicate official.

Stadshypotek’s Eu1bn deal was priced at 9bp over mid-swaps, after initial price thoughts of the low double-digits and guidance of the 10bp area drew more than Eu1.7bn of demand.

SEB’s last euro benchmark was a Eu1bn seven year launched in mid-February that was priced at 15bp over mid-swaps.