Eika Boligkreditt today (Friday) priced a EUR500m no-grow 10 year covered bond inside a larger 10 year from compatriot SpareBank 1 Boligkreditt two days ago, showing the market remains ripe for issuance, and BayernLB has mandated a 10 year. Caffil will soon roadshow its long-planned social debut.

Eika Boligkreditt’s EUR500m trade today took the week’s supply to EUR15.5bn of new benchmarks from 16 issuers, making it one of the busiest ever weeks in the euro covered bond market.

The Norwegian issuer announced its mandate yesterday afternoon and leads Crédit Agricole, LBBW, Natixis, Nordea and UniCredit this morning went out with guidance of the mid-swaps plus 25bp area for the EUR500m no-grow transaction. Books were well above EUR750m within an hour and after an hour and three-quarters guidance was revised to 23bp+/-1bp, WPIR, on the back of more than EUR1bn of demand, with the deal ultimately being priced at 22bp over when books were closed half an hour later.

The re-offer spread is 1bp inside that achieved by SpareBank 1 Boligkreditt for its EUR1.25bn 10 year deal on Wednesday, which attracted more than EUR2.4bn of orders. A syndicate banker at one of Eika’s leads said the prior Norwegian trade was quoted 2bp tighter today and that Eika paid a negligible new issue premium, taking into account its August 2025s quoted at 19bp over, mid, pre-announcement.

“The final result is a huge success for them and can be considered one of the issuer’s best ever trades,” he said. “It is not natural that they should price inside SpaBol, which they did. What helped was the EUR500m no-grow size.”

The order book and level of oversubscription was lower than those experienced by several of the deals earlier this week, and the lead banker put this down to Eika coming after the deluge of issuance, on a Friday, and fewer investors having lines available for the smaller credit.

“They nevertheless achieved the best possible outcome,” he added. “It not every day that they could issue such a successful 10 year, but SpaBol showed that there was a good market backdrop and Eika reacted quickly to the opportunity.”

Helaba tapped a EUR500m March 2028 public sector Pfandbrief by EUR500m today via Commerzbank, Crédit Agricole, Deutsche, DZ, Helaba, NordLB and UniCredit. The leads announced guidance of the mid-swaps plus 10bp area for the EUR500m no-grow trade and fixed pricing at 8bp over on the back of books above EUR900m.

The bond was initially issued at mid-swaps minus 14bp in March 2018. Helaba had already raised EUR2.25bn in the covered bond market this year, with a two-tranche trade on 9 January.

BayernLB this afternoon this afternoon announced a mandate for a EUR500m no-grow 10 year public sector Pfandbrief, which is expected at the start of the coming week via BayernLB, BNP Paribas, Commerzbank, Natixis and NatWest.

The following week Caffil will begin a roadshow for its new social bond framework ahead of a planned inaugural euro covered bond benchmark in the green and social bond market. Crédit Agricole and SG are joint structuring advisors and have been mandated with BayernLB, BNP Paribas and ING for the roadshow and planned medium-dated transaction.

As reported previously, Caffil’s programme is focused on health-related loans. The deal is set to be the first green or social covered bond from France.