Aktia Real Estate Mortgage Bank opened the market today (Wednesday) with a five year trade that was increased from Eu500m to Eu600m and priced towards the tight end of early talk. Crédit Agricole was also out with a tap, but opinions on prospects for further supply were mixed.

The deal was heard whispered in the low 50s over mid-swaps yesterday (Tuesday) and books were officially opened this morning at the mid-swaps plus 50bp area. The transaction is being re-offered at 50bp over.

“Bookbuilding went very well,” said a syndicate official from one of Aktia’s leads.

Aktia had initially indicated a size of Eu500m, but increased this by Eu100m after Crédit Agricole, JP Morgan, Nykredit and UniCredit built a book in excess of Eu1bn during the hour for which books were open. Demand had exceeded Eu700m in the first half hour.

“The issuer tried to find some collateral to increase the size,” said a syndicate official at one of the leads. “It was a very tough and hard allocation process, so it was very nice to get that Eu600m.

“The initial pricing was perfectly in line with other issues,” he added, “otherwise we wouldn’t have achieved the book we did.”

Aktia’s trade came on the back of a roadshow last week. The deal also followed a Eu1bn 10 year deal from fellow Finn Sampo Housing Loan Bank yesterday that was priced at 57bp over mid-swaps (see separate article).

Crédit Agricole was in the market today with a Eu150m tap of an outstanding June 2015 obligations à l’habitat. The increase is being priced at 43bp over mid-swaps, the tight end of initial guidance of 43bp-45bp, after books were open from 1000 to 1100 London time.

“The intention of the issuer was not to do a very big size,” said a syndicate official at Crédit Agricole.

The Greek situation continued to affect the market today, said covered bond bankers.

“An uncertainty has been there for months,” said a syndicate official. “Nevertheless, the solution is coming closer to us and therefore the entire market is now more volatile.

“I expect no more deals will be out this week. Those who are looking for windows to slip through will wait a little longer, probably following a solution or statement out of Greece.”

Another syndicate official was more positive.

“The market is a little bit moved by the ESSF 10 year trade at 17bp over,” he said. “If this trade is a good success, which I think it will be, this will positively affect covered bonds.”