Danske Bank priced a Eu1bn short five year covered bond at 2bp through mid-swaps today (Wednesday), making it the first Nordic euro benchmark covered bond to have been priced through mid-swaps, according to a syndicate official at one of the leads. Meanwhile, CCDQ has mandated a roadshow.

The mandate for the August 2019 deal – out of Danske’s “C” (commercial) pool – was announced yesterday afternoon and leads BNP Paribas, Credit Suisse, Danske, ING and UniCredit then went out with initial price thoughts of the mid-swaps plus 2bp area this morning.

On the back of Eu1.3bn of indications of interest, the leads set guidance at the mid-swaps flat area, with the deal size set at Eu750m-Eu1bn. With books approaching Eu1.75bn the spread was fixed at minus 2bp, and the deal size was ultimately set at the upper end of the range.

According to the lead syndicate official, it is the first Nordic euro covered bond print through mid-swaps. Nordic issuers have been among the tightest outside the German Pfandbrief segment.

The last euro benchmark from the Nordics was on 4 June, a Eu1bn five year for OP Mortgage Bank that was priced at 5bp over mid-swaps, while Danske priced a Eu1bn seven year a day earlier at 13bp over mids-swaps.

Meanwhile, Caisse centrale Desjardins du Quebec is planning a roadshow starting on Thursday of next week ahead of a potential euro benchmark. Barclays, Crédit Agricole and DZ are leads.