Nationwide took some Eu1.4bn of orders for its third euro benchmark of the year today, a Eu1bn seven year, while bankers were also encouraged by demand for a fifth euro benchmark from LBBW in 2015, as CFF and WL Bank announced mandates for deals expected tomorrow.

After seven deals took euro benchmark supply to Eu6bn last week, issuance today reached Eu2.75bn, with deals from Nationwide and LBBW as well as Banco Santander Totta and Banca Carige (see separate article).

“The market and new issuance conditions feel better than they have for a while, hence the busy start,” said one, “and while nothing is really flying, these deals seem to have gone satisfactorily, and the two from the core in particular look good.”

Nationwide Building Society leads Barclays, Deutsche, HSBC, Nationwide, and Société Générale launched the UK issuer’s Eu1bn seven year trade with IPTs of the 22bp area, before moving to guidance of the 20bp-22bp area on the back of IOIs in excess of Eu1bn. The order book closed at Eu1.4bn and the deal was re-offered at 20bp over.

“If you look back at subscription levels since September, they have on average been pretty skinny, and many of those were eligible for the ECB’s covered bond purchase programme” said a syndicate official at one of the leads. “For a non-CBPP3 eligible issuer to get a Eu1.4bn book for their third trade of the year on a busy day is a great result.

“There aren’t many other issuers that have done three euro benchmark trades that aren’t CBPP3-eligible.”

The lead syndicate official noted that a seven year Eu1.25bn Lloyds issue came at 10bp over mid-swaps on 7 September, but was quoted at 14bp, mid, today.

“To price just 6bp back of that is a nice outcome again,” he said. “Core trades in September have all been in that mid to high single-digits context when it comes to new issue premiums, and this deal has come at the lower end of that.”

Syndicate officials away from the leads agreed that the size of the final order book was a good result.

“This deal does show that premiums are a touch on the high side compared to averages over this year, even for core names,” said one, “but they can be happy with that level of demand.”

Landesbank Baden-Württemberg (LBBW) leads ABN, DZ, Erste and SG priced the German bank’s Eu500m no-grow six year public sector Pfandbrief at 10bp through mid-swaps, having launched the deal with guidance of the minus 8bp area. Books were over Eu700m when the re-offer was fixed.

“This has gone well and is comfortably oversubscribed, offering a premium that is in line with what we’ve seen in deals from last week,” said a syndicate official at one of the leads.

He said the deal offered a new issue premium of around 7bp based on LBBW’s secondary curve, seeing its August 2022s at minus 18bp, mid.

“This is one of those deals that you always feel comfortable with,” he added. “It’s a well-established name with a clear curve, it’s supported by CBPP3, it has a strong domestic investor base, and in the end its gone as well as we expected.”

The deal is LBBW’s fifth euro benchmark of the year, with its last having been a Eu1bn 10 year sold on 7 September. The German bank also sold a $500m (Eu440m) three year issue in February, which it tapped by $250m in March.

Compagnie de Financement Foncier (CFF) this morning announced a mandate for a euro benchmark five year obligations foncières issue, with leads Danske, DZ, Natixis, SG and UniCredit. The new issue will be brought to market tomorrow (Tuesday), according to a syndicate official at one of the leads.

The French bank has issued four euro benchmark covered bonds this year, the most recent a Eu1.5bn February 2023 issue on 1 September.

And WL Bank has mandated DZ, Helaba, HSBC and WGZ for a Eu500m eight year no-grow mortgage Pfandbrief.