Sparebanken Sør is readying its second euro benchmark for launch later this month, having today (Thursday) announced a roadshow. The Norwegian issuer joins RBS and Westpac in the pipeline, but an awaited dollar issue for South Korea’s Kookmin is not imminent, with tensions in the region a factor.

Sparebanken Sør Boligkreditt announced this morning that it has mandated Commerzbank, Danske Bank, LBBW, Nordea and UniCredit to arrange the roadshow, which will run from 15 to 19 May, taking in Frankfurt, Munich, Stuttgart, Helsinki, Copenhagen and London.

A Eu500m no-grow covered bond with a medium term maturity will follow, subject to market conditions. A syndicate banker at one of the leads said the deal is likely to be launched in the week after the roadshow, commencing 22 May.

The Norwegian issuer sold its first euro benchmark in March 2016. The Eu500m five year issue was priced at 22bp over mid-swaps and quoted at around flat, mid, this morning. The last euro benchmark from Norway was a Eu500m seven year for Eika Boligkreditt on 9 February.

Sparebanken Sør joins Royal Bank of Scotland (RBS) and Westpac in the pipeline, although both the UK and the Australian bank may opt for alternatives to euros.

RBS is on a European roadshow that will conclude tomorrow (Friday) ahead of a potential euro benchmark seven year and/or three year sterling benchmark covered bond offering. A syndicate banker at one of leads BNP Paribas, Commerzbank, Danske Bank and NatWest Markets said the deal could be launched early next week.

“I expect a quiet end to the week, so I think RBS is a good candidate to be the next issuer out,” he said. “We will wait for the full investor feedback before making any decisions about the currencies on Friday.”

RBS’s last benchmark covered bond came in January 2012, when it sold a £1bn (Eu1.18bn) 12 year. Its last euro benchmark was a Eu750m five year in November 2011.

Westpac will on Monday go on the road ahead of a potential euro benchmark covered bond or senior unsecured issue. The roadshow will conclude on Thursday of next week (11 May).

In the US dollar market, a 144A/Reg S covered bond issue has been awaited from Kookmin Bank since March, when it announced a mandate for a potential deal with a short to intermediate maturity. The South Korean issuer and leads BNP Paribas, Citi, Commerzbank, ING, Nomura, OCBC and Société Générale completed a roadshow visiting Hong Kong, Europe and the US in early April.

However, a syndicate banker at one of the leads said that while the deal remains in the pipeline, it should not be expected to emerge imminently.

“They are still monitoring the market and there is no timeline set as of now, although it could be around the end of May,” he said. “It is not in a super-hot mode right now.

“There are a couple of elements behind that, of course, with there being a lot of political tensions around the Korean peninsula, which also play a role here.”

The last benchmark covered bond from South Korea was a $500m (Eu458m, Won565bn) five year for Korea Housing Finance Corporation in October.