Coventry Building Society has mandated leads for its first euro benchmark covered bond in three years and is expected to tap the market soon after roadshows end on Tuesday of next week. Caisse centrale Desjardins du Quebec is meanwhile expected mid-week after Canadian Thanksgiving today (Monday).

The Coventry last issued a euro benchmark in October 2011, a Eu650m three year deal that matures on 24 October (Friday of next week).

Danske, HSBC, Natixis and UniCredit were today announced as arrangers of a roadshow that will start in London on Thursday and take in France, the Netherlands, Austria, Finland, Norway and end in Germany on Tuesday of next week.

A syndicate official at one of the leads said that, given the state of the market, the issuer could issue at short notice but, like SCBC last week, it saw the value of a roadshow.

“Market-wise you could perhaps just jump in with a day and half’s notice and also be fine,” he said, “but I know Coventry as an issuer is very much in favour of roadshowing and knows it pays off, and they also want to get a flavour of sentiment.”

The last euro benchmark UK covered bond was a Eu1.5bn dual tranche transaction for Abbey, split into Eu1bn five year and Eu500m 10 year tranches, on 11 September. The five and 10 year tranches were priced at 2bp over mid-swaps and 14bp over, respectively.

The only other euro benchmark officially in the pipeline is a deal for Caisse centrale Desjardins du Quebec (CCDJ), which finished a roadshow the week before last. Having finished its preparations, the issuer is now expected to come to market this week, with a banker close to the issue indicating that after a public holiday in Canada today for Thanksgiving the deal could be set in motion tomorrow afternoon, with launch on Wednesday. Barclays, Crédit Agricole and DZ Bank have the mandate.

The issue will come after CIBC on Wednesday sold the tightest ever Canadian covered bond, a Eu1bn five year at mid-swaps flat. CCDJ is understood to be considering a medium term issue and, according to feedback from the roadshow, could lean towards issuing a new five year rather than establishing a seven year benchmark – its inaugural and only euro benchmark was a Eu1bn five year issued in March at 15bp over mid-swaps.