Caffil attracted EUR2.7bn of orders to a EUR1.5bn dual tranche deal today (Tuesday) and Erste met the upper end of expectations with a EUR1bn 10 year, but a UOB EUR500m seven year was deemed to have met a more modest response, finding less attention in a busy market.

Today’s three trades came after recent sessions had seen a variety of euro benchmark covered bonds meet varied fates, some finding deep demand while others went slowly as market conditions softened with sellers predominant in the secondary market. However, the new issues from Erste and Caffil were held up as evidence of an upturn in conditions.

“I think that on the whole we are operating in fairer weather today,” said a syndicate banker at one of Erste’s leads. “There seems to be more buyers than sellers, or less sellers than buyers.”

Following a mandate announcement yesterday, Erste Group Bank leads Crédit Agricole, Credit Suisse, DZ, Erste and LBBW launched the Austrian bank’s 10 year benchmark with guidance of the mid-swaps minus 2bp area this morning.

After just under one hour, the leads announced that books had exceeded EUR1bn, excluding joint lead manager interest. Guidance was subsequently revised to the minus 5bp area, plus or minus 1bp will price within range, with books at EUR1.5bn, excluding JLM interest. The spread was ultimately fixed at minus 6bp and the size at EUR1bn. The final book stood at EUR1.75bn, including EUR90m JLM interest.

A syndicate banker at another of the leads said the deal was priced at the upper end of expectations in terms of size and the tighter end in terms of price.

“This was not the most straightforward exercise, but in the end it went very well,” he said. “Of recent transactions, some – namely CFF’s 10 year trade and trades from peripheral names – have received less demand while markets have been turning a touch softer, and in that context this is a good outcome for Erste.

“It shows that there is name differentiation going on. If you have a good name that has less to do, at a reasonable price, then investors are still willing to get engaged – which I think is a very positive note.”

The deal was deemed to have been priced with a new issue premium of 1bp-2bp, with bankers seeing Erste January 2023s at minus 13bp, mid, February 2025s at minus 12bp, and January 2027s at minus 9bp.

Bankers added that the deal’s success was supported by its pick-up over the Austrian sovereign of some 15bp-16bp.

At the same time as its compatriot Crédit Agricole was in the market with a EUR1.25bn long eight year deal, Caffil yesterday announced a two-tranche, eight and 15 year benchmark via leads Barclays, Deutsche, Natixis, SG and UniCredit.

The eight year tranche was launched with guidance of the minus 7bp area and the 15 year with guidance of the 5bp area, before guidance was revised to minus 9bp and 2bp respectively. The eight year tranche was ultimately priced at minus 10bp, for a size of EUR1bn, and the 15 year at flat, for a size of EUR500m, upon a combined book of EUR2.7bn.

“That book is an impressive figure,” said a syndicate banker away from the leads. “It’s a very strong result.”

United Overseas Bank (UOB) announced yesterday that it had mandated Deutsche, HSBC, NordLB, UBS and UOB for a seven year euro benchmark.

The Singaporean bank’s deal was launched this morning with guidance of the 5bp over mid-swaps area. Guidance was at 13:00 CET to the 2bp area, plus or minus 1bp will price within range, and the size set at EUR500m, with the book in excess of EUR750m, including Eu50m JLM interest. The spread had not been fixed at the time The CBR went to press.

Bankers noted the deal was progressing slowly, despite the leads announcing at 13:00 that books would close at short notice.

“It’s going averagely, I’d say,” said a syndicate banker away from the leads. “There’s not as broad an audience for Singaporean banks here in Europe as there is for European names like those they are coming up against today, names that have been more established over a longer period of time.

“There’s also a lot of euro corporate issuance in the market today. It’s nothing to be overly concerned about, but just the standard dynamic where you have a lot of supply for investors to pick and choose from.”

Bankers said the deal looked on track to offer a new issue premium of around 2bp, seeing DBS Bank November 2024s, the last Singaporean euro benchmark, trading at around minus 1bp, mid.

While this morning’s deals were still being executed, Société Générale SFH announced a mandate for a 10 year euro benchmark obligations de financement de l’habitat, via Banca IMI, Danske Bank, ING, LBBW, SG and UniCredit. The deal is expected to be launched tomorrow.

Syndicate bankers at the leads cited as comparables SG SFH October 2027s at minus 12bp, mid, and the 2027s of fellow French issuers Crédit Agricole, CM-CIC, BPCE and La Banque Postale, all trading between minus 11bp and minus 10bp.