Euro

OP Mortgage Bank built the biggest order book of this week’s deals for a Eu1.25bn five year benchmark that was priced at 40bp over mid-swaps yesterday (Thursday). The issuer told The Cover that it usually comes to the market in the spring, but that this year it paid off to postpone its transaction.

EBS Building Society yesterday (Thursday) placed its first unguaranteed bond since the Irish government guarantee scheme was introduced in September 2008, via a Eu1bn three year benchmark covered bond sold by its subsidiary, EBS Mortgage Finance. The issuer told The Cover that it is delighted to have overcome the challenges it faced in making its public debut and is looking forward to building on it for the future.

EBS Mortgage Finance is taking orders for a Eu1bn three year mortgage-backed benchmark at the 175bp over mid-swaps area today (Thursday), while OP Mortgage Bank was this morning twice oversubscribed on a Eu1.25bn five year.

Banco Espírito Santo nipped into the covered bond market to price a Eu1bn long five year obrigacões hipotecarias issue yesterday (Tuesday) afternoon. The issuer told The Cover that the transaction allowed it to achieve a goal it had set in the market’s darkest days.

Banco Espírito Santo will today (Tuesday) price a Eu1bn long five year obrigacões hipotecarias benchmark at the tight end of guidance that was itself set at a tighter range than that whispered yesterday (Monday). Meanwhile at least two other issuers are understood to be eyeing Thursday for the launch of new issues.

A Eu1bn five year cédulas hipotecarias priced for Caja Madrid yesterday (Thursday) brought the number of benchmark issues from Spain launched since the beginning of September to 10, representing a concentration of activity unmatched by recent supply from other jurisdictions.

Bankinter priced a Eu1bn five year cédulas hipotecarias on Tuesday, almost exactly six months before the maturity date of the last benchmark it launched, a Eu1.5bn two year deal. The issuer told The Cover that it decided it would play it safe by prefunding.

Compagnie de Financement Foncier was able to increase the size of a long two year deal yesterday (Wednesday) afternoon and price it at the tight end of guidance, despite coming at the tightest level for a covered bond benchmark this year. Meanwhile, CRH is tapping a long dated deal in the wake of Dexia Municipal Agency earlier this week.

Caja Madrid is in the market with a Eu1bn five year benchmark covered bond that is being marketed at 70bp-75bp over mid-swaps, wider than where the bank sold a Eu1.75bn seven year at the end of September.

A Eu500m four year mortgage Pfandbrief for Corealcredit launched yesterday (Wednesday) faced two main challenges – a non-jumbo size and a BBB- issuer rating – but, according to a syndicate official at one of the leads, these were overcome, allowing the deal to be priced at an attractive level for the issuer.

Compagnie de Financement Foncier has closed books on a Eu1.5bn long two year deal, which will be the shortest dated and tightest benchmark covered bond to be priced this year. Meanwhile, Corealcredit will shortly close books on a four year mortgage Pfandbrief, and levels wider than where a Bankinter benchmark was priced yesterday (Tuesday) are being whispered for a forthcoming Caja Madrid cédulas issue.

Bankinter is today (Tuesday) pricing a five year benchmark that market participants hope will provide welcome relief from recent Spanish deals that have not performed in the secondary market. Meanwhile, other borrowers are embarking on roadshows ahead of deals to be launched as early as next week.