MünchenerHyp tapped a 10 year Pfandbrief by Eu250m today (Monday), pricing flat to the outstanding bond upon some Eu270m of orders. Sp Mortgage Bank is set to launch a Eu500m five year covered bond tomorrow, but a quiet week is expected as blackout periods take hold.

MünchenerHyp reopened the May 2027 issue with the spread set at minus 17bp for a minimum tap size of Eu125m this morning. The deal was ultimately tapped for Eu250m on the back of around Eu270m of orders, including joint lead manager interest.

The original Eu500m deal was priced at minus 12bp in May and seen trading at around 17bp, mid, implying that the tap offered no new issue premium.

Commerzbank, DZ, Goldman Sachs, HSBC and Nomura were leads.

The deal was launched into a subdued primary market, although Greece’s Eurobank today announced a mandate for a roadshow ahead of a debut euro benchmark covered bond (see separate article) and Finland’s Sp Mortgage Bank confirmed plans to issue its awaited deal.

Sp Mortgage Bank concluded a five day European roadshow on Friday, having marketed a euro benchmark issue with an intermediate maturity. The Finnish bank and leads, BNP Paribas, LBBW and Nordea announced this morning that the deal will be a Eu500m no-grow five year with timing expected as early as tomorrow (Tuesday).

A syndicate banker at one of the leads said this week is expected to be less busy than the last and the issuer was therefore not in a rush to launch the deal today, even though feedback throughout the roadshow had been very promising.

The deal will be Sp Mortgage Bank’s second benchmark covered bond, following a Eu500m five year in November 2016.

Syndicate bankers at the leads saw the Sp Mortgage Bank November 2021s at minus 1.5bp, mid, today. They also cited as comparables paper from more established Finnish issuers, seeing Aktia March 2022s at minus 11.5bp and 2022-2023 paper from Nordea Mortgage Bank and OP Mortgage bank at minus 14bp-13bp.

The deal will be the first benchmark covered bond from Finland since 30 May, when OP Mortgage Bank sold a Eu1bn 10 year.

Last week’s Eu2bn of benchmark issuance, coming after Eu2.5bn in the previous week, confirmed a slowdown in the pace of supply after a much more active end to September.

Even with Eurobank’s expected benchmark, euro issuance is expected to remain relatively limited for the rest of the month as issuers across Europe enter blackout periods. However, bankers said issuers not yet in blackout could be tempted into the market given the prevailing highly conducive market conditions and wariness that these could be affected by a potential ECB announcement on QE tapering on Thursday of next week (26 October).