RLB Noe-Wien attracted over Eu800m of orders to a Eu500m seven year deal today (Tuesday) that is understood to be the tightest Austrian benchmark with a maturity of seven years or more. Nykredit’s first syndicated euro covered bond, a Eu500m FRN, meanwhile attracted Eu1.4bn of demand.

After a more tentative start to the week yesterday (Monday) that featured just one benchmark covered bond, a Eu1.25bn long seven year for CFF, three new euro benchmarks were launched this morning, with Banco Desio also in the market – making today the busiest day in the primary market since 15 February.

“There’s a lot of activity today and not just in covereds, with deals across all market segments going well,” said a syndicate banker. “Today’s covereds showed the market is truly wide open, and for all kinds of names and all kinds of deals.”

After announcing a mandate yesterday afternoon, Raiffeisenlandesbank Niederösterreich-Wien (RLB Noe-Wien) leads BNP Paribas, DZ Bank, LBBW, RBI and UniCredit launched the Eu500m no-grow fundierte Bankschuldverschreibungen with guidance of the flat to mid-swaps area this morning.

Guidance was later revised to the minus 2bp area, plus or minus 1bp will price within range, on the back of over Eu700m of orders, excluding joint lead manager interest. The spread was then fixed at minus 3bp with the books “well above” Eu800m, excluding JLM interest.

A syndicate banker at one of the leads said the deal is the first benchmark Austrian covered bond with a maturity of seven years or more to be priced with a negative spread.

“It is very decent in all aspects,” he added. “To get over Eu800m for a Eu500m trade and tighten the price by 3bp to a new all-time low in seven year spreads is a rock solid result, I’d say.”

Syndicate bankers said the deal offered a new issue premium of around 1bp, citing RLB NOe-Wein April 2021s at minus 7.5bp, mid, September 2022s at minus 6bp, and March 2025s at minus 3.5bp. It was deemed to have offered a pick-up of some 24bp versus the Austrian sovereign.

The deal is the Austrian issuer’s first benchmark covered bond since October 2015.

Nykredit’s syndicated euro debut follows a series of investor meetings last week.

Leads JP Morgan, Natixis, Nordea, Nykredit and UniCredit launched the Eu500m (Dkr3.72bn) October 2022 FRN with guidance of the three month Euribor plus 10bp area this morning. Guidance was later revised to the 8bp area on the back of over Eu1bn of orders, before the spread was fixed at 6bp with books in excess of Eu1.4bn, including Eu60m joint lead manager interest.

The deal was priced with a coupon of three month Euribor plus 50bp.

Nykredit has issued euro FRN covered bonds before, but not via syndication, with past syndicated euro issuance having been of junior covered bonds/senior secured and other instruments.

Bankers said that deals in other asset classes today, such as a Eu750m inaugural senior non-preferred issue for Belfius that attracted over Eu2.25bn of demand, offered further proof of the primary market’s strength. They said more supply could emerge tomorrow, with issuers potentially keen to access the market before an ECB governing council meeting on Thursday.

“There is plenty of liquidity out there, and this is a smart window for issuers to use, ahead of the ECB,” said a syndicate banker. “I would not be surprised to see more take the opportunity.”