SR-Boligkreditt is set to launch an inaugural US dollar benchmark in the near future, having mandated for a five year Reg S transaction, following 144A deals in the past fortnight for fellow Scandinavians DNB and Stadshypotek that uncovered strong demand for dollar issuance.

The Norwegian issuer has mandated Goldman Sachs, JP Morgan, Nomura and TD Securities for the debut.

Fellow Norwegian DNB Boligkreditt on 21 March sold the first US dollar benchmark covered bond from the Nordics since May 2015, a $1.5bn (Eu1.41bn, Nkr12.9bn) five year, before Sweden’s Stadshypotek sold a $1.25bn five year last Wednesday. The deals attracted $2.9bn and $2.8bn of orders, respectively, and bankers said the strong receptions demonstrated the dollar market was opening up to a more varied range of issuers.

A syndicate banker at one of SR-Boligkreditt’s leads added that European take-up of the two deals was “very substantial” and that smaller issuers could therefore dispense with the 144 format and instead suffice with a Reg S deal.

SR-Boligkreditt’s last non-domestic benchmark covered bond was a Eu750m five year in June 2016. The syndicate banker said that a roadshow was deemed unnecessary given the targeted investors’ familiarity with the credit.

Bankers estimated that the recent issues from DNB Boligkreditt and Stadshypotek had been priced modestly wider than the spreads the issuers would have been able to achieve with equivalent euro trades, with arbitrage in dollars having diminished recently. DNB’s five year was seen at 48bp, bid, when Stadshypotek priced its five year at the same level on Wednesday.