Euro covered bond supply accelerated today (Monday) with four euro benchmarks. SCBC and Swedbank sold “aggressively subscribed” Eu1bn issues, while a Eu500m NordLB Pfandbrief was marginally subscribed – although this was attributed to idiosyncratic reasons.

In the three days of issuance between Tuesday and Thursday last week (with Monday having been a public holiday in some countries), issuers maintained a pace of three euro benchmark covered bonds per day, but, with Bank of Nova Scotia also selling a Eu1.25bn five year today (see separate article), the pace increased to four.

After announcing a mandate on Friday, Swedish Covered Bond Corporation (SCBC) leads Citi, Goldman Sachs, LBBW, Nordea and UBS launched its seven year issue with guidance of the 5bp over mid-swaps area. The deal was re-offered at 2bp and the size set at Eu1bn (Skr9.56bn). Syndicate bankers said the deal offered a new issue premium of around 2bp-3bp.

The new issue is the SBAB subsidiary’s first benchmark covered bond since January 2016, when it sold a Eu1bn February 2021 issue.

Swedbank leads BayernLB, Credit Suisse, Natixis, NatWest Markets, Société Générale and Swedbank launched its five-and-a-half year deal with guidance of the flat to mid-swaps area this morning, without having announced the mandate previously. The spread was fixed at minus 3bp and the size at Eu1bn, on the back of Eu1.8bn of orders.

“Swedbank has built the most convincing, impressive book of the day,” said a banker away from the leads. “It is a very tight, very strong result.

“Put simply, it is a name investors like.”

The deal was deemed to have offered little to no new issue premium, with bankers citing Swedbank November 2022s at around minus 4bp-5bp, bid.

Swedbank’s last euro benchmark covered bond came in February 2016, a Eu1.25bn February 2021 deal.

Today’s Swedish issuance is the first euro benchmark supply from Sweden since June, when Stadshypotek sold a Eu1bn June 2022 issue at 3bp over mid-swaps.

NordLB leads Crédit Agricole, HSH Nordbank, Natixis, NordLB and UniCredit launched the 10 year public sector Pfandbrief with guidance of the 3bp through mid-swaps area. The spread was eventually fixed at minus 3bp and the size at Eu500m on the back of books above Eu500m.

Bankers away from the deal said NordLB’s was one of the weaker results since the market opened, but attributed this to idiosyncratic reasons.

“The 10 year is a maturity than can work well at the moment, but at this price NordLB were not offering much more premium than some of the high quality names out there in shorter maturities,” said a banker away from the deal. “Furthermore, NordLB is still struggling with perceptions on the capital side, having been in the headlines due to its ties with the shipping industry.

“Because of that, many accounts are still cautious about this name. I wouldn’t read too much into this outcome, as last week’s Pfandbriefe were more encouraging.”

The deal is the fourth German Pfandbrief offering since the markets opened last week, following a Eu1bn seven year for LBBW on Tuesday, a Eu500m tap of a February 2023 Commerzbank issue on Wednesday, and a Eu2bn dual tranche, five and 10 year issue for Helaba on Thursday.

NordLB launched one euro benchmark covered bond last year, a Eu750m 10 year public sector Pfandbrief on 24 October. Its Luxembourg-based issuer, NordLB Luxembourg Covered Bond Bank, sold a Eu500m seven year deal in June.

Bankers expect the market to be similarly busy tomorrow, with Erste the first issuer to announce its intentions to print a deal, having published a mandate this afternoon for 10 year benchmark via Crédit Agricole, Erste Group, ING, LBBW and Natixis.

The deal will be the Austrian issuer’s first benchmark covered bond since January 2016, when it sold a Eu750m January 2023 issue.

At least one other issuer is said to be monitoring the market with a view to launching euro benchmark tomorrow.