A Eu250m five year covered bond debut for Oma Savings Bank today (Monday) was twice subscribed while being priced roughly flat to comparable sub-benchmark supply, with demand seen supported by a double-digit pick up versus benchmark outstandings of established Finnish names.

The Finnish bank completed a European roadshow on Friday – with leads Danske Bank, LBBW and Nordea – marketing an inaugural sub-benchmark issue.

The five year deal was launched this morning with guidance of the 5bp over mid-swaps area for an expected size of Eu250m. The leads later revised guidance to the 2bp area, plus or minus 1bp will price within range, and said the size would be Eu250m, on the back of Eu440m of orders, including Eu25m joint lead manager interest. The spread was ultimately fixed at 1bp with books above Eu500m, including Eu25m JLM interest.

Bankers said the size of the book was particularly impressive, and compared favourable to some recent sub-benchmark issues from Germany.

“For a sub-benchmark, and at this time of the year, that is impressive demand,” said a syndicate banker away from the leads.

Bankers said it was difficult to estimate fair value for the deal, but noted it was priced roughly flat to outstanding sub-benchmark Nordic issues. They saw Møre Boligkreditt Eu250m June 2022s at 2bp, mid, and Mortgage Society of Finland Eu300m June 2024s at 3bp.

It offered a pick-up of the mid-to-high teens versus benchmark supply from more established Finnish issuers, with bankers seeing 2022-2023 paper from Nordea Mortgage Bank, OP Mortgage Bank and Aktia trading between minus 17bp and minus 14bp.

“It is a sensible price for a debut sub-benchmark, and the pick-up over the benchmark Finnish outstandings will have no doubt been a strong selling point,” said a syndicate banker away from the leads.