Currencies

Crédit Mutuel-CIC could breach the Eu1bn threshold that has proved a sticking point for many recent deals with its new two year covered bond priced yesterday (Thursday), despite coming in the midst of other French supply

Dexia Municipal Agency priced a new Eu1.25bn three year obligations foncières (OF) issue yesterday afternoon, enjoying strong interest from eastern European central banks and Asia.

ING has opened books this morning on what is only its second covered bond. The 10 year benchmark mortgage bond’s attractive pricing drew strong demand in a crowded marketplace, although the eye-catching spread split opinion.

Crédit Mutuel-CIC (CM-CIC) continued the flurry of French issuance ahead of Société Générale’s debut, with a new Eu1.5bn two year structured covered bond set to price this afternoon. The deal demonstrates that it is not just the country’s obligations foncières that are in demand, although one banker outside the deal queried the pricing.

Société Générale has opened the books on its debut five year public sector obligations foncières that is due to be priced tomorrow (Friday).

Dexia Municipal Agency has closed the books on a Eu1.25bn three year obligations foncières issue after generating Eu1.65bn of orders this (Wednesday) morning. And the next French issue could hit the market soon.

Finland’s OP Mortgage Bank priced its new Eu1bn covered bond yesterday (Tuesday) afternoon. The issuer told The Cover it was pleased at the high level of demand for its annual euro benchmark.

Eurohypo sold the first 10 year mortgage backed jumbo Pfandbrief yesterday (Tuesday) afternoon since before the crisis took hold last summer, a Eu1bn transaction priced at the tight end of guidance. A Eurohypo official said that the deal’s success vindicated the issuer’s decision to launch the transaction, which replaced its originally planned shorter dated public sector backed issue.

Eurohypo adopted a change of tactics with its latest covered bond this (Tuesday) morning. Having initially awarded a mandate for a five year public sector deal, the issuer has switched to a mortgage backed jumbo and pushed the maturity out beyond its original plans.

Finland’s OP Mortgage Bank opened books on a new Eu1bn covered bond this (Tuesday) morning, hoping to use its shorter maturity to strike a different tenor from recent Nordic bonds that found the going tough in both the primary and secondary markets.

Norway’s Storebrand Kredittforetak priced its debut euro issue yesterday (Wednesday) afternoon, a Eu500m two year issue. The deal attracted strong demand from Scandinavian accounts.

BNP Paribas priced a new Eu1.5bn five year covered bond yesterday (Wednesday) afternoon after the leads decided that the strength of the order book would allow them to price a deal above the Eu1bn level that several other issuers have recently been restricted to. Bankers are now looking forward to what could be achieved next week.