BPCE, Commerzbank and Scotiabank each tapped the euro benchmark covered bond market today (Thursday) with five year deals for an aggregate Eu2.25bn, and bankers cited smooth execution as evidence the market is in good shape and recovering from the Greek crisis.

The three new issues today took the number of euro trades this week to six, after four weeks without a true euro benchmark.

“This all indicates the market is in good strength, and very much where it was before the Greek disaster,” said one. “Those who are still contemplating doing something have, I think, now seen that this is, unless some unexpected and unlikely bad headline happens, a good market to go into.”

Bankers noted that some uncertainty remained regarding a bridge loan for Greece, and cited a German parliamentary vote on the bailout package tomorrow (Friday) as a potential obstacle, but said noise surrounding Greece was mostly positive, meaning further supply is likely next week.

“There are still hurdles to clear this week,” said one, “but assuming it all goes smoothly we will be in a good position on Monday, and there’ll be no reason not to do more deals.”

Bank of Nova Scotia leads Barclays, Deutsche, Goldman, Scotia and UBS launched the Canadian’s Eu1.25bn (C$1.76bn) deal with initial price thoughts of 10bp over mid-swaps, before issuing guidance of 8bp plus or minus 1bp. The re-offer was set at 7bp before the books were closed at Eu1.7bn.

Syndicate officials away from the deal noted that the pricing progressed in the same way as a Lloyds Bank Eu1.5bn five year issue yesterday (Wednesday).

“They walked the Lloyds line, and it seems to have gone very well for them,” said one.

Another syndicate official away from the leads compared Bank of Nova Scotia’s issue favourably to a Eu1bn six year Westpac deal that was priced in line with guidance at 17bp yesterday having gathered orders of over Eu1.1bn.

“It looks as though they have been more aggressive on the pricing than Westpac,” he said, “but they got good demand that allowed them to do so, and it looks a good result.”

The new issue is Bank of Nova Scotia’s first euro benchmark since a Eu1.25bn five year issue in October 2014, with the issuer having sold a $1.1bn five year on 8 April.

The last euro benchmark from a Canadian issuer was a Eu1bn seven year issue from Royal Bank of Canada on 10 June, which was priced in line with initial price thoughts and barely subscribed as a back-up in rates disrupted its execution.

Commerzbank leads BBVA, Commerzbank, NordLB, UBS and UniCredit priced its Eu500m no-grow five year at 16bp through mid-swaps. The deal was launched with initial price thoughts of the minus 11bp area, with the leads setting guidance of the minus 14bp area. The final book size was not disclosed by the leads at the time The CBR went to press.

Syndicate officials away from the leads said the new issue offered a new issue premium of 1bp-3bp, based on Commerzbank’s secondary curve. They also noted that the pricing had progressed roughly in line with a LBBW Eu750m five year, which landed at minus 15bp on Tuesday.

“LBBW left one extra basis point on the table to be able to go for the Eu750m size, so for Commerzbank this seems a good, sensible level,” said one syndicate official.

The deal is Commerzbank’s second euro benchmark this year, following a Eu500m seven year issue in January that was increased by Eu500m in March.

BPCE also launched a Eu500m no-grow five year deal, with leads BBVA, Deutsche, Natixis and NordLB going out with initial price thoughts of minus 3bp, before setting guidance at minus 6bp. The deal was priced at minus 8bp, with the books closing at Eu1.35bn.

A syndicate official at one of the leads said the deal offered a new issue premium of 2bp, citing the issuer’s January 2020 paper at minus 10bp.

Bankers noted that BPCE’s deal was the first non-German CBPP3-eligible deal recognised as a benchmark since a CFF Eu1.5bn three year on 9 June – with a Eu500m three year Caffil issue last Thursday viewed as a club deal. They said that its success, and that of Commerzbank, would likely encourage other issuers.

“Those two CBPP3-eligible deals, both benefitting from being limited in size, have gone smoothly while offering a minimal new issue premium,” added one. “That is a healthy sign.”