NIBC is expected to sell a Eu500m 10 year conditional pass-through (CPT) covered bond tomorrow (Tuesday), shortly after fellow Dutch issuer Aegon sold a seven year issue, as bankers said conditions remain extremely supportive for new supply in “an issuer’s market”.

NIBC announced a mandate today (Monday) for the Eu500m no-grow issue, with leads ABN Amro, Commerzbank, LBBW, NIBC and RBS. A syndicate official at one of the leads said the deal is expected tomorrow, subject to market conditions.

The deal will be the Dutch issuer’s first benchmark covered bond since April 2015, when it sold a Eu500m seven year issue.

Syndicate officials at the leads saw NIBC 2018 and 2019 paper quoted at 3bp, mid, and April 2022s at 6bp. They also cited ABN Amro 2019s and 2022s at minus 5bp and its January 2026s at minus 1bp.

The new issue will come shortly after a CPT covered bond for Aegon, which on Wednesday priced a Eu500m May 2023 deal at 14bp over mid-swaps. The deal was today seen trading at 12bp, mid.

Only two euro benchmark covered bonds were sold last week, with Caja Rural Castilla-La Mancha also in the market on Wednesday to sell a Eu500m eight year cédulas.

Euro benchmark issuance was today limited to SSA supply, but bankers said conditions remained very supportive for further covered bond issuance, after last week’s deals were highly oversubscribed.

Aegon attracted orders of over Eu1.7bn for its deal and La Mancha over Eu1.8bn – with the Spanish deal tightening by around 4bp on the aftermarket, even though its execution was criticised by a major investor.

“The main takeaway from last week’s deals is simply that it is still an issuer’s market,” said a banker. “I think we will see more than the one deal, but the shortened week will probably help keep supply down and demand high.”

Syndicate officials said the window for euro issuance will likely be narrowed to just Tuesday and Wednesday this week, with some regions of Germany marking Corpus Christi on Thursday. They said the market might then not reopen until next Tuesday, as Monday is also a public holiday in the UK.

SR-Boligkreditt could come to the market with a euro-denominated issue this week, having begun a European roadshow on Friday.

DBS Bank is also expected to launch an Australian dollar-denominated covered bond this week, after having held an investor call today. The deal would be the Singaporean issuer’s second benchmark covered bond and its first in the currency, as well as being only the third covered bond overall from Singapore.