Suncorp-Metway opened books for a 10 year Australian dollar covered bond today (Monday) that will be its longest-dated deal, and RD announced a roadshow ahead of a Swedish krona issue, with the market’s focus remaining on other currencies than euros.

Suncorp-Metway’s new issue is the Australian issuer’s second covered bond of the year, following a A$500m five year floating rate note on 15 June.

Suncorp leads ANZ, Deutsche, NAB and UBS launched the 10 year fixed rate issue today with initial price thoughts of the 140bp over swaps area, for a minimum size of A$100m (Eu68.5m). The leads then announced that the book had exceeded A$250m after a “strong early response”, with a significant number of domestic and Asian accounts still to revert, while the guidance was unchanged. The guidance was later revised to 135bp-140bp on the back of books in excess of A$350m.

The leads said books will close no later than 10:00 Sydney time tomorrow (Tuesday) and that the deal will be priced by 12:00.

Suncorp sold its first covered bond in May 2012, a A$1.6bn dual tranche deal, and has since only issued benchmarks denominated in in its domestic currency.

The new issue is Suncorp’s longest-dated covered bond, with all its previous issuance having maturities of three to five years.

Realkredit Danmark (RD) announced a mandate this morning for a series of investor meetings in Stockholm on Tuesday of next week (23 August). The Danske subsidiary said that a Swedish krona-denominated refinancing of an outstanding bond due 1 October 2016 (ISIN DK0009291239) will be launched in the near future, subject to market conditions, as part of the Danish refinancing auctions.

The Danish auction season begins on Wednesday with sales from Nykredit, and will continue until Thursday of next week (25 August).

Analysts at Danske said a total of around Dkr67bn (Eu9bn) of non-callable bullets will probably be sold and around Dkr40bn in floating rate notes.

Syndicate officials expect a reopening of the euro covered bond market with benchmark issuance either next week or the week after, with many market participants still on holiday. Last Friday, Commerzbank sold the first significant public covered bond supply in the euro market since 20 July, tapping by Eu250m a Eu750m July 2024 Pfandbrief.

A syndicate official at one of Commerzbank’s leads said the deal had tightened by around 2bp as of this morning.

“It went very well, and showed what can be done,” he said. “Our base case here is that any euro issuance this week will be this same kind of opportunistic trade, but we do not expect much.”