Covered Bonds

Oversea-Chinese Banking Corporation (OCBC) issued a €500m five year covered bond on Thursday that was more oversubscribed than any previous Singaporean deal and priced inside fair value in what a lead manager described as ‘a one-way market’.

NordLB received a higher level of demand for a €500m seven year Pfandbrief this week than in its previous two deals, showing it has good access to capital markets despite challenges it faces dealing with a €9bn bad shipping loan portfolio.

Oversea-Chinese Banking Corporation (OCBC) and NordLB have signalled their intention to exploit exceptionally strong covered bond market conditions and open order books for transactions on Thursday.

Deutsche Apotheker und Aerztebank (Deutsche Apo) issued the tightest German 10 year Pfandbrief of the year on Wednesday at a level that was probably through interpolated fair value.

Aareal Bank managed to attract orders of more than £550m for its £250m Pfandbrief, reflecting the fact that the bonds offer tremendous value relative to senior unsecured and corporate debt. The deal followed a tap of similar size issued by Swedbank.

Caixa Económica Montepio Geral has mandated lead managers to market the first publicly syndicated Portuguese conditional pass through (CPT) covered bond using a structure that is somewhat different to Dutch CPTs.

The subscription ratio of a seven year covered bond issued by SR Boligkreditt this week was higher than any Norwegian deal issued in at least six years.

Credit Mutuel Arkéa (CM-Arkéa) this week issued the tightest French 10 year covered bond in euros this year with a deal that gave funding that was cheaper than anything it had previously issued.

Investors piled into a Unione di Banche Italiane (UBI) €1.25bn 10 year Obbligazioni Bancarie Garantite on Monday, despite it offering no new issue premium and being the issuer’s largest and longest transaction in at least six years

National Bank of Greece (NBG) is poised to issue the first post-crisis Greek covered bond, having drawn confidence from the blowout reception Santander Totta won for its €1bn 10 year this week — the longest Portuguese deal since 2010. Bill Thornhill reports.

Vseobecna uverova banka and Stadtsparkasse München have both been keeping the sub-benchmark covered bond market busy with deals this week.

Commonwealth Bank of Australia subsidiary, ASB Finance, has mandated leads for a roadshow to market its first covered bond of the year and the third from a New Zealand issuer.