Crédit Agricole attracted over Eu1bn of orders to a Eu500m long 10 year obligations foncières today (Monday), its sixth benchmark this year. The pipeline is clearing, but an inaugural social covered bond from Kommunalkredit is due this week, while Danske has scheduled a Swedish debut for autumn.

Crédit Agricole Public Sector SCF leads Banca IMI, Crédit Agricole and ING launched the Eu500m no-grow August 2027 issue with initial price thoughts of the 7bp over mid-swaps area this morning. After 40 minutes, guidance was revised to 3bp-7bp will price within range on the back of around Eu1bn of orders. Another 30 minutes later, the spread was fixed at 3bp, with books “well above” Eu1bn.

“It’s another good result for Crédit Agricole,” said a syndicate banker away from the deal. “No doubt they are helped by the market dynamics, but it seems that investors are far from tiring of this name.”

The deal is Crédit Agricole’s sixth new benchmark covered bond this year – taking its benchmark issuance to Eu5.9bn year-to-date – the previous five all having been sold through its obligation de financement l’habitat issuer Crédit Agricole Home Loan SFH. Crédit Agricole Public Sector SCF’s last benchmark covered bond came in October, when it sold a Eu500m 10 year issue.

Bankers said fair value for the new issue could be interpreted in two ways, seeing Crédit Agricole Home Loan SFH May 2027s – its most recent 10 year benchmark, having been priced at 5bp on 26 April – trading at around minus 1bp, mid, this morning. They also cited the Crédit Agricole Public Sector SCF October 2026s at 2bp.

“If you look at the latest 10 year from the SFH, this has a rather decent new issue premium,” said a banker away from the leads. “If you look instead at the last deal from the SCF, it does not leave so much on the table.

“Judging by the book, most people chose to see it the former way.”

Bankers said demand for the deal will have been further boosted by a rise in yields last week, which enabled the French issuer to offer a substantially higher coupon and more yield than recent long-dated trades.

The deal was priced with a coupon of 0.875% to yield 0.93%. The most recent 10 year benchmark covered bond from France, a Eu500m issue for La Banque Postale on 14 June, was priced with a coupon of 0.625% to yield 0.743%.

Crédit Agricole’s twice-subscribed deal offered encouragement that deals can still be done as the summer break approaches, but noted that the pipeline is clearing.

Kommunalkredit Austria is expected to sell a Eu300m social covered bond this week, having completed a European roadshow last month. The issuer announced on Thursday that it will sell the four year issue after further investor work.

Danske Bank announced last Tuesday that it has been granted approval from the Swedish FSA to start mortgage lending and begin issuing Swedish covered bonds via new subsidiary Danske Hypotek.

Danske held a roadshow in March marketing a debut Swedish krona benchmark with a maturity of three to five years. The deal had been expected as early as June, but Danske CEO Per Tunestam said last week that Danske Hypotek will offer its first covered bonds in the autumn.

Danske is currently in a blackout period, and will report 20 July.