Møre Boligkreditt sold its first public euro covered bond today (Tuesday), a Eu250m five year issue that attracted over Eu420m of orders, while offering a “fair” pick-up versus recent benchmark supply from fellow Norwegian issuers. BayernLB could be set to issue a sterling covered bond next month, having announced a roadshow today.

Møre Boligkreditt, a subsidiary of savings bank Sparebanken Møre, has issued covered bonds since being established in 2009, mainly focussing on the domestic Norwegian krone market. Before today’s debut, its only euro-denominated covered bonds have been private placements.

The Norwegian issuer announced its intention to launch a sub-benchmark euro debut on 15 May, and held a roadshow between Monday and Wednesday of last week.

Leads LBBW and Nordea launched the Eu250m no-grow issue this morning with initial price thoughts of the 10bp over mid-swaps area. After one hour, the leads announced that books had exceeded Eu300m, excluding joint lead manager interest.

Guidance was later revised to 8bp plus or minus 1bp, will price within range, on the back of over Eu375m of orders. The spread was ultimately fixed at 7bp, with the book closing above Eu420m.

“It’s a convincing trade,” said a syndicate banker away from the leads.

Bankers noted that the deal offered a pick-up versus the last euro benchmark from Norway, a Eu500m five year for Sparebanken Sør Boligkreditt that was priced flat to mid-swaps on 22 May.

“That’s a fair price, given the sub-benchmark size, and the fact that this is not an issuer that is expected to step up to issuing Eu500m benchmarks any time soon,” said a banker.

Møre Boligkreditt’s covered bonds are rated Aaa by Moody’s, and parent Sparebanken Møre is rated A2. The issuer said its euro debut will be LCR Level 2A-eligible and is intended to be ECB repo-eligible.

Bayerische Landesbank announced this afternoon that it has mandated BayernLB and Credit Suisse to arrange a series of senior unsecured and covered bond fixed income investor meetings in the UK on 13-14 June.

Should a sterling-denominated covered bond follow, it would be BayernLB’s second this year, following a £250m short five year fixed rate issue in January.