Euro benchmark issuance resumed for the new month at tight levels but less exuberance today (Tuesday), with Sparebanken Vest Boligkreditt issuing a €750m green long five year and Hypo Vorarlberg a €500m eight year flat to inside fair value, while CBA is expected tomorrow with an eight year.

After a mandate announcement yesterday (Monday), Sparebanken Vest Boligkreditt leads Barclays, Commerzbank, DZ, ING (sole structuring advisor) and Nordea opened books this morning with initial price thoughts of the mid-swaps plus 6bp area for the November 2026 green euro benchmark, expected rating triple-A. After an hour and 10 minutes, they reported books above €1bn, including €150m in joint lead manager interest. After two and a quarter hours, the spread was set at plus 2bp on the back of books above €1.35bn, including €140m in JLM interest. After two hours and 50 minutes, the size was set at €750m (NOK7.49bn) on the back of books above €1.16bn, with unchanged JLM interest, and the final order book was above €1.1bn.

A syndicate banker at one of the leads said the Norwegian issuer hit all its targets.

“It’s a very decent transaction,” he said, “and one to please everyone – except those felt 2bp was a little on the tight end. But that’s how these deals work at the moment: demand is overshooting supply to such an extent that it’s basically all in the hands of the issuer, and I can’t blame any issuer for making use of this.”

A syndicate banker away from the leads said he had expected the deal to be priced even tighter, at plus 1bp.

“Maybe given the quality of the book, they decided to go for a slightly higher volume that 2bp allowed,” he added. “At the end of the day, green is definitely helping to get a tight print – and plus 2bp is a tight print.”

Sparebanken Vest typically issues €500m benchmarks and the new issue is only its second €750m deal.

The lead banker said comparables clearly pointed to fair value at plus 2bp, implying no new issue concession. According to pre-announcement comparables circulated by the leads, Sparebanken Vest green June 2027s were quoted at plus 2.2bp, mid, and conventional February 2026s at plus 1.8bp.

The new issue is the first euro benchmark of five years or shorter from the Nordics since January, when Jyske sold a €500m five year, with Norwegian issuance this year having been in seven to 10 years.

“One of the reasons we advocated fives was for a little bit of a change,” said the lead banker, “and my impression was that investors appreciated this.”

The deal was priced at a yield of minus 0.181%.

Hypo Vorarlberg also hit the market after a mandate announcement yesterday, with leads Barclays, DekaBank, Erste, LBBW and UniCredit going out this morning with initial guidance of the mid-swaps plus 7bp area for the €500m no-grow October 2029 mortgage Pfandbrief, expected rating triple-A. After an hour and 10 minutes, they reported books above €1bn, excluding JLM interest. After two hours, the spread was fixed at plus 3bp on the back of an order book above €1.2bn, including €75m in JLM interest. Books good at re-offer were €975m, with unchanged JLM.

A lead banker said the deal went quite well, citing the quality of the order book, even if the level of subscription was modest, and a negative new issue premium of 1bp.

“If you look at the trades we saw last week, the quality of this book is much stronger, so given this, you can argue that this was the right way to go for the trade, he said.

“We didn’t see a huge blow-out as observed in the aftermath of earlier transactions, so I think the market is calming down a bit,” he added. “Fast money accounts and intermediaries are playing, but not that strongly, so now we are indeed getting real money and treasury accounts involved, and that is exactly what we want to see as a syndicate group.”

Another syndicate banker echoed this, saying there is less “fantasy” in the market today.