Bank of Montreal launched a five year US dollar-denominated covered bond today (Wednesday) that is set to be the tightest-priced 144A benchmark in the currency this year. Denmark’s BRFkredit is meanwhile set to go on the road ahead of a second euro benchmark.

Canada’s Bank of Nova Scotia on 19 April sold the previous tightest-priced non-Eurodollar issue of the year, a $2.5bn (Eu2.2bn, C$3.2bn) five year issue at 78bp over mid-swaps – it was also the largest dollar covered bond since 2012.

Only Germany’s LBBW has sold a tighter US dollar benchmark covered bond in 2016 – a $650m three year Reg S Pfandbrief that was priced at 51bp – while all of the year’s earlier supply was priced in the 90s.

Bank of Montreal leads BAML, Barclays, BMO, HSBC and JP Morgan launched the five year 144A issue this morning with initial price thoughts of the “very low 70s” over mid-swaps. The deal is expected to be priced later today.

A syndicate official away from the leads estimated the IPTs level was equivalent to the high single-digits in euros, which he said is around where an equivalent euro-denominated issue would likely be priced.

BMO’s last US dollar benchmark covered bond came in January 2012. The Canadian bank has since then issued mainly in euros, with one sterling benchmark in January 2015.

BMO has sold two euro benchmarks this year, a Eu1.5bn (C$2.19bn) three year in January and a Eu1.5bn five year on 12 April.

BRFkredit announced a mandate yesterday (Tuesday) afternoon for a series of European investor calls and meetings, ahead of a potential euro-denominated benchmark covered bond, with leads BayernLB, DZ, ING and Nordea. The roadshow will begin on Friday and conclude on Tuesday (14 June), visiting Munich, Frankfurt, Helsinki, Vienna, and Amsterdam.

The deal would be the Danish issuer’s second euro benchmark covered bond, following a Eu500m five year debut on 16 March.