Caffil sold the first French covered bond in either green or social format today (Tuesday), a EUR1bn eight year healthcare deal that drew over EUR2.6bn of orders, which a lead suggested marginally outperformed two deals yesterday. BPCE is expected tomorrow and Volksbank Wien with a roadshow.

Caisse Française de Financement Local (Caffil) held a roadshow last week ahead of the debut off a programme established with its parent, SFIL, and yesterday (Monday) afternoon said it would soon launch an eight year deal.

Leads BayernLB, BNP Paribas, Crédit Agricole, ING and SG this morning went out with initial guidance of the mid-swaps plus 16bp area for the eight year euro benchmark. Books were above EUR1.5bn, excluding JLM interest, within three-quarters of an hour, and the guidance was revised to 12bp+/-1bp, WPIR, with orders over EUR2.5bn after a little over an hour and a half. The deal was ultimately sized at EUR1bn and priced at 11bp over on the back of books above EUR2.6bn, including EUR50m JLM interest, pre-reconciliation.

“Given that they got to flat versus fair value, all in all it was a great trade,” said a lead syndicate banker.

“The framework was well received and we got a lot of decent-sized tickets from SRI investors.”

He cited the issuer’s one month shorter outstanding January 2027 issue at 11bp over, mid, pre-announcement.

Ten year benchmarks for ING and CBA yesterday were priced with new issue premiums of 1bp-2bp, after preceding issues had been priced flat to through issuers’ curves. The lead syndicate banker suggested that this may have occurred, in spite of better conditions this week than the end of last, because the Swedish and Norwegian credits who achieved the tighter outcomes are rarer names or from scarcer jurisdictions than the Dutch and Australian issuers. He suggested that the “novelty” of Caffil’s social bond enabled it to achieve a similar outcome to the scarcer paper despite the French name being a regular issuer and this being its third transaction this year after a dual-tranche trade, incorporating EUR750m six and EUR500m 15 year issues, on 8 January.

“It also merited the more aggressive move,” he added, with Caffil moving 5bp from the middle of initial guidance to re-offer, compared with 4bp for yesterday’s issuance.

“There were a couple of drops, but nothing material or detrimental to the transaction.”

Further French supply is expected tomorrow in the same part of the curve, with BPCE SFH having mandated an eight and a half year euro benchmark to BBVA, Crédit Agricole, Commerzbank, HSBC, ING and Natixis.

Volksbank Wien is roadshowing should launch its first euro benchmark covered bond soon, after the announcement this morning of a roadshow running through next week. The Austrian mortgage-backed issue is expected to have an intermediate maturity. DZ, Erste, HSBC, ING and LBBW have been mandated for the roadshow.