DZ Hyp attracted over €5.3bn of orders to a €1bn dual-tranche green mortgage Pfandbrief today (Monday), with the short end continuing to trump the long end but both successful, while Bank of Nova Scotia opened non-CBPP3-eligible euro issuance with a €1.75bn five year.

DZ Hyp leads Crédit Agricole, Danske, DZ, IMI-Intesa Sanpaolo, NordLB and UniCredit went out with guidance of the mid-swaps plus 1bp area and 16bp area, respectively, for the €500m no-grow January 2026 and November 2032 green mortgage Pfandbriefe, expected ratings Aaa/AAA (Moody’s/S&P). After around 40 minutes, they reported books above €1.7bn, including €80m of joint lead manager interest, and above €650m, including €65m of JLM interest, and after around an hour and a half, the spreads were set at minus 4bp and plus 13bp on the back of books above €3bn and €1.3bn. The final orders books were above €4bn and €1.3bn, respectively, for an aggregate of over €5.3bn.

“We had very strong early momentum – we announced it on Friday,” said a syndicate banker at one of the leads, “and the three year just went ballistic. It was a complete free for all with massive interest from near and far, as with Berlin Hyp and other short-dated triple-A covered.

“The 10 year was also quite strong,” he added.

The move of 5bp from start to finish on the three year tranche put it flat to where Berlin Hyp priced the €500m no-grow three year social part of a dual-tranche Pfandbrief last Tuesday. Several bankers deemed minus 4bp flat to fair value, with one arguing that while DZ Hyp might be expected to trade 1bp back from Berlin Hyp at the short end, potentially implying that fair value was minus 3bp, this differential is partly attributable to Berlin Hyp’s curve being increasingly green/social, and he noted that the latter’s three year issue had tightened to around minus 7bp since launch.

DZ’s short 10 year was priced 2bp wider than its compatriot’s €500m no-grow green 10 year, which attracted a little over €1bn of demand, and offered a new issue premium of around 3bp.

“I would say that while Berlin Hyp was already very dynamic, DZ today was even more so,” said another lead banker. “Price sensitivity was low and everyone liked the concept – dual-tranche, green, and will-not-grow always helps as it derisks on the size side.”

He said it was good to see demand in 10 years reaffirmed after Berlin Hyp’s trade and a €1bn deal in the maturity for BayernLB on Wednesday.

“Will it work for everyone?” he added. “I’m not sure.”

BPCE SFH is set to test appetite for French paper at the long end of the curve, with a 10 year tranche alongside a long four year, following a mandate announcement today. Crédit Agricole, Credit Suisse, Commerzbank, DZ, ING, LBBW, Natixis and Santander are leads.

According to pre-announcement comparables circulated by the leads, BPCE September 2027 to January 2028 paper was trading at 15bp-16.5bp over, and its January and May 2032s at 23bp and 24bp, respectively.

Bank of Nova Scotia (BNS, Scotiabank) priced its €1.75bn (C$2.50bn, US$1.86bn) five year at 35bp over mid-swaps – which was seen as offering a new issue premium of around 8bp – on the back of more than €2bn of orders.

“They have come away with a very respectable trade, with good subscription and paying a NIP of about 8bp,” said a syndicate banker away from the leads. “That’s actually quite strong for a large non-Eurozone trade, so clearly there is a very good bid for paper from outside Europe.

“It also came comfortably inside what RBC paid in sterling, and if that continues, we’ll keep seeing these issuers come to euros.”

In sterling, RBC issued a £750m (C$1.22bn, €852m) floating rate note at Sonia plus 75bp, after Santander UK sold a £1.5bn five year floater at plus 65bp on Thursday.

Deutsche Bank is planning four and seven-and-a-half year mortgage Pfandbriefe, each with expected €500m sizes. BayernLB, Crédit Agricole, Deutsche, ING, Natixis and Scotiabank have the mandated.

A syndicate banker said that beyond the public pipeline, several other names are monitoring the market and that the primary market should remain busy for the rest of the week.

“Issuers in the second tier are a bit wary of coming to the market on day when there might be four other deals in the market,” he added.