Stadshypotek is offering its first benchmark US dollar covered bond in almost two years, a 144A five year that is set for pricing later today (Wednesday), after DNB sold a $1.5bn deal last week. Westpac NZ is set to launch a euro-denominated five year issue tomorrow, having completed a roadshow.

Stadshypotek leads Citi, HSBC, RBC and Toronto-Dominion launched the five year 144A/Reg S issue with initial price thoughts of the low 50s over mid-swaps area this morning. The leads announced before the US open that they had taken more than $1.7bn (Eu1.57bn) of orders, and pricing is expected later today.

Stadshypotek’s last benchmark US dollar covered bond was in April 2015, when it sold a $1bn five year 144A issue. The Svenska Handelsbanken subsidiary has sold one euro benchmark this year, a Eu500m seven year on 14 February.

On Tuesday of last week (21 March), Norway’s DNB Boligkreditt issued a $1.5bn five year 144A covered bond, the first US dollar benchmark from the Nordics since May 2015.

That fixed rate issue was priced at 50bp over mid-swaps on the back of $2.9bn of orders, which bankers noted was unusually large demand for dollar paper from a Nordic country.

“DNB’s deal showed that there’s a lot of dollar demand to go around,” said a syndicate banker. “You can see why Stadshypotek wanted to get in on the action.”

Westpac Securities NZ’s deal has been awaited since the New Zealand issuer on 20 March mandated HSBC to arrange a European roadshow that commenced on Monday, flagging its intention to print a euro covered bond with a maturity of five to seven years.

After completing the roadshow, Westpac NZ announced a mandate this afternoon for a five year issue, via leads HSBC, JP Morgan and Westpac. A banker at one of the leads said the deal is likely to be launched tomorrow, subject to market conditions.

The deal will be the first benchmark covered bond from New Zealand since October, when ASB Finance sold a Eu500m (NZ$765m) seven year issue.

Westpac NZ has sold one euro benchmark covered bond in each of the last three years, its last a Eu750m five year issue in June. Its Australian parent, Westpac, last sold a euro benchmark covered bond in July 2015, a Eu1bn six year.