Yorkshire Building Society is set to issue a Eu500m six year covered bond next week, having announced a mandate this (Friday) afternoon upon the completion of a European roadshow. South Korea’s Kookmin is preparing to issue a US dollar five year and will go on the road next week.

Yorkshire’s deal has been awaited since the UK issuer last week announced a series of investor meetings, commencing on Tuesday and arranged by HSBC, Lloyds Bank, UBS and UniCredit.

It announced a mandate for a Eu500m no-grow six year issue today, via the same lead group. Syndicate bankers at the leads said the deal will be launched next week, subject to market conditions.

The leads saw Yorkshire November 2022s at 5.5bp, mid, pre-announcement. They also cited as comparables Nationwide Building Society October 2022s at minus 0.5bp, Lloyds Bank April 2023s at 2bp, Coventry Building Society January 2024s at 11.5bp and Nationwide February 2024s at 5.5bp.

The deal will be Yorkshire’s first benchmark covered bond since November 2015, when it sold a Eu500m 10 year.

Since the Brexit vote last June and the launch of the Bank of England’s related Term Funding Scheme, only two euro benchmark covered bonds have been sold out of the UK – a Eu500m seven year for Coventry Building Society on 5 January and a Eu1bn seven year for Nationwide Building Society on 16 February.

Kookmin Bank announced a mandate this morning for a roadshow commencing next Wednesday ahead of a potential US dollar 144A/Reg S covered bond with a short to intermediate maturity. The roadshow will visit Hong Kong, Europe and the US, and be arranged by BNP, Citi, Commerzbank, ING, Nomura, OCBC and SG.

The deal will be Kookmin’s first benchmark covered bond since January 2016, when it sold a $500m (Eu466m, Won557bn) five year, which was quoted at 79bp, bid, today, according to a syndicate banker away from the leads.

The last benchmark from South Korea was a $500m five year for Korea Housing Finance Corporation in October.

Kookmin is the only South Korean issuer to sell benchmark covered bonds under the country’s dedicated legislative framework, which took effect in 2014. The state-owned KHFC has so far continued to issue under distinct legislation specific to the institution.