Swedish Covered Bond Corporation achieved “textbook execution” on the latest Swedish five year issuance today (Tuesday), a €1bn covered bond priced on the back of some €1.5bn of demand in a quieter primary market, while Bawag PSK and KEB Hana are expected with three year trades.

Leads BNP Paribas, Citi, Danske, DekaBank and HSBC opened books this morning with guidance of the mid-swaps plus 22bp area for a euro benchmark-sized May 2028 covered bond, expected rating Aaa. After around two-and-a-quarter hours, they reported books above €1.3bn, and around 20 minutes later, the spread was set at 18bp on the back of books above €1.4bn, excluding joint lead manager interest. The size was ultimately set at €1bn (SEK11.3bn) on the back of books above €1.5bn good at re-offer, excluding JLM interest and pre-reconciliation, and the final order book was around €1.5bn, excluding JLM interest.

“It’s an excellent outcome,” said a banker at one of the leads. “I think the market appreciates issuers going to guidance of ‘the number’, rather than saying 19bp plus or minus 1bp, will price in range, which leaves you in less of a position of strength. We had a pacy bookbuild filled with high quality demand.

“It was pleasing to be able to move 4bp to land at the spread they achieved as well as taking the €1bn. We see the NIP as 2bp-3bp, which is at the low end of the scale.”

SCBC’s deal is the fourth euro benchmark in the five year part of the curve this year and came flat to where the last was re-offered, a €1bn July 2028 trade from Swedbank Hypotek on 29 March. SCBC’s pricing was meanwhile 2bp back from where Finland’s OP Mortgage Bank issued a €1bn October 2028 covered bond the week before last, on 13 April.

“A lot of people think Sweden’s quite tight,” said the lead banker, “but the fact that SCBC has been able to get such a great trade done is a testament to them and to the region.

“They were also able to take advantage of maybe a quieter backdrop in a market.”

The Swede’s euro benchmark is only the second this week, with Landesbank Baden-Württemberg yesterday having had the market to itself for a €750m three-and-a-half year public sector Pfandbrief.

Leads BBVA, ING, LBBW, Natixis, RBC and UniCredit priced the November 2026 issue, expected rating Aaa, at mid-swaps minus 4bp on the back of a final book of over €1.7bn, including €220m of joint lead manager interest. The pricing was tightened from guidance of the minus 1bp area, with the ultimate new issue premium put either side of 2bp by bankers at and away from the leads.

Bawag PSK and KEB Hana are also set to target the short end tomorrow, with three year euro benchmarks.

The Austrian has mandated BayernLB, Citi, Commerzbank, DekaBank, Erste and IMI-Intesa Sanpaolo for its trade. Bawag January 2027s were seen at plus 14bp, according to pre-announcement comparables circulated by the leads, while UniCredit Bank Austria July 2026s were at 12bp, Erste April 2026s at 11bp and Erste January 2027s at 12bp.

KEB Hana is focusing on the three year maturity for an inaugural “SME Empowerment” social covered bond expected tomorrow, according to an update today. The South Korean issuer had flagged a three to five year maturity range when embarking upon marketing at the beginning of last week, and has since engaged with over 50 investors in the process.

Among pre-announcement comparables circulated by the leads, KEB Hana January 2026s were seen at 33bp and Kookmin January 2026s at 35bp. BNP Paribas, Citi, Crédit Agricole, HSBC and SG have the mandate.