Italy’s UBI Banca tapped a Eu750m January 2023 issue by Eu250m today (Thursday) that, at 13bp, offered one of the tightest OBG spreads seen in the primary market, according to a lead banker. BNZ and Suncorp have meanwhile mandated for euro and Australian dollar issues, respectively.

UBI leads Barclays and Commerzbank reopened the Eu750m January 2023 OBG with guidance of the 13bp over mid-swaps area, for a tap size of Eu250m. The spread was then set at 13bp, while the size of the order book was not disclosed.

The deal was priced last October at 36bp over mid-swaps, and was trading at 10.5bp, mid, pre-announcement, according to a syndicate official at one of the leads.

“It is a pretty tight level, and relatively expensive versus the sovereign,” said the lead syndicate official. “It looks like one of the tightest Italian covered bond pricings for quite some time.

“But we looked at the 10.5bp level, and decided on 13bp as it would offer an appropriate pick-up.”

The lead syndicate official added that the order book was “very solid” in spite of some price sensitivity.

“We always presumed that we might price the deal at 13bp, and in the end it was a very clean exercise, and UBI in a couple of days will now have a nice Eu1bn sized trade.”

BNZ International Funding today announced a mandate for a five year euro benchmark covered bond, following a European roadshow.

Fellow New Zealand issuer Westpac NZ attracted around Eu1.6bn of orders for a Eu750m issue on Tuesday.

“Westpac NZ went very well, and was probably one of the most solid results we have seen from the country,” said a banker away from the deal. “That shows the progress they have made, and it is very encouraging for BNZ.”

Suncorp-Metway mandated ANZ, Deutsche, NAB and UBS for a five year Australian dollar-denominated covered bond issue today. The deal is expected to be launched next week, according to a syndicate official at one of the leads.

Suncorp sold its first covered bond in May 2012, a A$1.6bn dual tranche issue.