A Eu1bn SG SFH issue is likely to remain the only new benchmark covered bond of the week, according to bankers, with a Thanksgiving public holiday in the US an excuse for a break on the primary markets, but an ING Belgium debut is on the cards for next week.

ING Belgium HQ, Brussels

Société Générale SFH priced a Eu1bn seven year obligations de financement à l’habitat (OH) deal at 16bp over mid-swaps on Monday, but no other issuers followed it into the benchmark covered bond market.

Syndicate bankers are not expecting much supply before the end of the year, noting a selling bias in the secondary market as investors seek to lock in performance, but said that launching out-of-the-ordinary new issues this side of the new year still makes sense.

ING Belgium is likely to do just this, having been on roadshow this week in connection with an inaugural deal off a new covered bond programme. The roadshow finishes today (Thursday) and the issuer will hold an update call tomorrow, with a deal probable for next week, subject to market conditions, according to a syndicate banker at one of the mandated banks – Barclays, BayernLB, ING, Société Générale and UniCredit.

ING Belgium would be the third Belgian covered bond issuer, after Belfius Bank and KBC Bank. Secondary market levels for their covered bonds, plus Dutch issuance from ING’s parent will be relevant comparables, according to a lead banker. Belfius and KBC are trading at around 14bp over in seven years, for example.

More French supply was also mentioned as a possibility for next week, although rumours of a BNP Paribas transaction are said to be unfounded. National Bank of Canada is the only other issuer with an outstanding public mandate, having been on a roadshow earlier this month before entering a blackout period before the release of its fourth quarter results on 4 December.

One syndicate banker cited 10 December as the last day for new issuance this year given that settlement dates thereafter will fall too close to the Christmas holiday.