Currencies

Millennium BCP has mandated Barclays Capital, Deutsche Bank, Millennium Investment Banking and Natixis for a jumbo issue to be launched after a roadshow. Meanwhile OTP Mortgage Bank is sounding out the market for a two year deal through ABN Amro and Deutsche Bank at 60bp-65bp over mid-swaps.

Sparkasse KölnBonn priced its non-jumbo covered bond yesterday afternoon, while in the non-covered bond jumbo market Land Niedersachsen mandated a Eu1.25bn 10 year issue this morning. The jumbo covered bond market, however, remains dead.

Depfa is reacting to the volatile market conditions by reducing the minimum size for its euro benchmarks this year from Eu2bn to the usual minimum jumbo standard, typically Eu1bn. The bank is also likely to continue its focus on the private placement market for issuance in 2008.

Sparkasse KölnBonn opened books for a Eu500m three year mortgage Pfandbrief issue that features market-making at 2bp over mid-swaps this morning. A syndicate official at leads Barclays Capital, Deutsche Bank and WestLB said that the order book was developing very well.

EFG Eurobank, the third largest bank in Greece, is poised to be among the first to take advantage of the new Greek covered bonds legislation. It plans to meet its wholesale funding target of approximately Eu4bn this year through a debut covered bond alongside two ABS issues.

Landesbank Berlin’s Eu1bn three year public sector Pfandbrief issue was performing well in the aftermarket today, after having come at the tightest level of any jumbo so far this year. Meanwhile the bank was also pleased to report the success and pricing level of the first German structured covered bond.

Around Eu3.5bn of orders within one hour for Landesbank Berlin’s three year jumbo public sector Pfandbrief this morning allowed the bank to achieve pricing at the tight end of its mid-swaps flat to minus 1bp range, making it the first benchmark covered bond to be priced inside Libor this year.

DnB Nor Boligkreditt will soon be joining the throng of international issuers touting registered covered bonds to German investors. However, the Norwegian issuer is already enjoying an embarrassment of riches in the private placement market after selling its Eu2bn five year benchmark in mid-January.

Deutsche Apotheker und Ärztebank eG has confirmed its intention to enter the jumbo covered bond market, although its debut is still some way off, according to the bank. Initial expectations that the bank would issue in the second quarter may be frustrated.

Moody’s has assigned a triple-A rating to Series 1 of Landesbank Berlin’s (LBB) Daheim 2 structured covered bond programme.

Deutsche Apotheker und Ärztebank eG (apoBank), Germany’s largest primary co-operative bank, with Eu35.9bn of total assets as of 30 June 2007, plans to issue its first mortgage Pfandbrief.

Portugal’s Caixa Geral de Depósitos (CGD) has mandated ABN Amro, Caixa-Banco de Investimento, Dresdner Kleinwort and Natixis as bookrunners for a benchmark sized covered bond.