Caisse centrale Desjardins du Québec (CCDQ) today (Wednesday) announced the mandate for an inaugural euro legislative covered bond while NBC starts investor update meetings in moves confirming expectation of a “flurry” of Canadian euro supply. Meanwhile, BPCE SFH priced a Eu500m tap.

CCDQ has mandated Barclays, BNP Paribas, Crédit Agricole and DZ Bank to lead manage a five year euro legislative covered bond. The announcement comes after CCDQ’s legislative programme was at the end of January registered with Canada Mortgage & Housing Corporation (CMHC) under Canada’s covered bond legislation.

CCDQ has yet to issue covered bonds in euros, but has previously sold US dollar benchmark covered bonds, the last time in February 2012.

National Bank of Canada (NBC), meanwhile, earlier today announced a series of meetings with European covered bond investors. BNP Paribas, Commerzbank, NBC Financial Markets and RBS have the mandate for the roadshow, which starts today and runs until Friday, according to a syndicate banker at one of the leads. The issuer is targeting meeting with investors that were not involved in a roadshow NBC conducted late last year before launching a Eu1bn five year covered bond in December, its first euro covered bond and inaugural issue off a new legislative programme.

No Canadian bank has issued covered bonds this year and a syndicate banker said there is “pent up” demand for Canadian euro supply. He said he is not surprised that NBC made the first move among Canadian issuers after it announced 2014 first quarter results on Monday.

“I would not be surprised to see a flurry of activity in the coming weeks,” he said. “A number of Canadian issues were expected at the back-end of last year, but in the end there wasn’t that much, which was a disappointment for European investors.”

Royal Bank of Canada reports its latest results today and Canadian Imperial Bank of Commerce (CIBC) takes its turn tomorrow (Thursday). Bank of Nova Scotia is the other Canadian issuer to have a covered bond programme approved by CMHC under Canada’s covered bond legislation, and reports results on 4 March.

Three Canadian banks issued euro benchmark covered bonds last year, with NBC’s deal the last. It was priced at 12bp over mid-swaps in December and is trading at 9bp over, according to a syndicate banker at one of the leads.

A syndicate official away from today’s mandate announcements said that the euro covered bond market offers attractive funding and strategic diversification into Europe for Canadian issuers.

BPCE SFH today added Eu500m to a Eu500m 2.375% November 2023 obligations de financement de l’habitate (OH) issue, with Natixis as sole lead. The increase was priced at 30bp over, after guidance of the low 30s over, with the re-offer spread incorporating a 1bp new issue premium over secondary market bid levels, according to a syndicate banker on the transaction.

More than Eu580m of orders were placed for the tap. The underlying issue was first launched in late November last year, and was priced at 43bp over.

Norway’s Eika Boligkreditt, formerly Terra BoligKreditt, started a euro benchmark covered bond roadshow today, which is being arranged by Deutsche Bank, LBBW, Natixis and Nordea. The roadshow finishes on Tuesday (4 March) and a deal could follow soon thereafter, according to a syndicate banker at one of the leads. The issuer is said to have a preference for a five to seven year maturity.