Stadshypotek attracted EUR1.25bn demand to a EUR1bn seven year covered bond today (Wednesday), while WL Bank provided the latest long-dated supply in the form of a EUR250m tap, More is to come from RLB Oberösterreich tomorrow, while HSH is set to issue a five year.

Stadshypotek leads Barclays, Commerzbank, Danske Bank, Handelsbanken and UBS launched the Swedish seven year issue with guidance of the mid-swaps plus 5bp area. The spread was later set at 3bp with books above EUR1.2bn, excluding joint lead manager interest, before the size was fixed at EUR1bn, with books over EUR1.25bn.

“It’s a very decent outcome – getting EUR1bn done and getting decent pricing momentum without the help of the ECB,” said a syndicate banker away from the leads.

Bankers said the deal paid a new issue premium of around 5bp versus the issuer’s curve.

The deal is the Svenska Handelsbanken subsidiary’s first euro benchmark covered bond of the year, with its last a EUR750m seven year in November 2017.

It is Stadshypotek’s largest euro covered bond since June 2016. Although the issuer had until then tended to print deals of EUR1bn or larger, its last four deals comprised three EUR500m issues and the EUR750m last year.

WL Bank leads BayernLB, Commerzbank, DZ Bank, LBBW and UBS reopened the EUR500m March 2028 mortgage Pfandbrief with guidance of the mid-swaps minus 7bp area for a EUR250m no-grow tap.

Guidance was later revised to the minus 7bp area, plus or minus 1bp will price within range, with books above EUR340m, including EUR65m JLM interest. The spread was then fixed at minus 8bp with books over EUR430m, including the EUR65m JLM interest.

The original EUR500m March 2028 issue was priced at minus 13bp in March and seen trading at around minus 10bp, mid, pre-announcement.

The deal follows long-dated supply yesterday (Tuesday) from compatriot MünchenerHyp, which priced a EUR500m long nine year Pfandbrief at minus 8bp, and Crédit Agricole, which printed a EUR1.5bn long 10 year.

Issuance at the long end is set to continue, as RLB Oberösterreich announced this morning that it has mandated DekaBank, DZ, Erste, RBI and UniCredit to lead manage a EUR500m no-grow 10 year covered bond. The deal is expected to be launched tomorrow, subject to market conditions.

HSH Nordbank also announced a mandate today for a EUR500m no-grow five year covered bond, which is expected tomorrow. Barclays, BNP Paribas, Deutsche, HSH and NordLB have the mandate.