France

Nordea Bank Finland will today (Tuesday) price a Eu2bn five year inaugural benchmark covered bond after building one of the biggest order books for a euro issue this year, while Austria’s Hypo NOE Gruppe Bank met with sufficient demand to sell a Eu500m three year inaugural public sector Pfandbrief.

An April 2016 Caisse de Refinancement de l’Habitat issue was the only new benchmark covered bond live in the market this (Monday) morning, but with three other issuers lining up deals and two more borrowers announcing mandates the pipeline of forthcoming new issues and roadshows is well stocked.

Leeds Building Society is lining up to re-open the sterling covered bond market next week, while other inaugural deals are expected to lead a resumption of new benchmark issuance in euros.

Spain’s Cajamar is gathering orders for a tap of a 3.5% October 2014 issue that is being marketed at a level around 205bp wider than where the original deal was sold in October 2009, while Crédit Agricole yesterday (Tuesday) priced a Eu350m increase of a October 2025 deal in response to domestic investor interest in longer maturities and some shorts in the market.

The benchmark covered bond market opened for issuance on Tuesday, but was restricted to a Eu350m tap of a 4% October 2025 Crédit Agricole deal. But Spain’s Cajamar is also testing investor interest for an increase of a 3.5% October 2014 issue with what would be the widest spread so far in the benchmark market.

A 10 year obligations foncières issue launched by Compagnie de Financement yesterday (Thursday) reached the Eu1bn mark that an official at the issuer told The Cover was “a definite focus” for its tapping of what she described as a very technical part of the curve.

Concrete plans for new issue projects next week appeared thin on the ground this (Friday) morning, but this could be a misleading indicator of forthcoming supply. At least three issuers are on the road next week, Spanish banks are emerging from blackout periods, and bankers said that French issuers are likely to be encouraged by a successful Compagnie de Financement Foncier Eu1bn 10 year transaction sold yesterday.

Compagnie de Financement Foncier took advantage of an increase in yields to launch a Eu1bn 10 year obligations foncières issue today (Thursday), its third and longest dated Eu1bn or greater deal of the year.

Axa Bank Europe SCF inaugurated a Eu5bn obligations foncières programme on Friday with a Eu750m 10 year deal that an official at the issuer told The Cover represented “a big success”. He also discussed the choice of the French instrument and the use of RMBS as collateral.

Belgium’s Axa Bank Europe secured the first refinancing of its mortgage business via covered bonds today (Friday), with Axa Bank Europe SCF receiving solid demand for an inaugural, Eu750m 10 year obligations foncières issue.

Italy’s Intesa Sanpaolo relaunched issuance of covered bonds secured by residential mortgage backed securities when it yesterday (Wednesday) sold a Eu1bn five year issue that a syndicate official at one of the leads said successfully overcame reduced line availability for Italian debt and some resistance to the deal’s structure. Axa Bank Europe is expected to provide a second test of appetite for such product shortly.

The French parliament has passed without amendments a law introducing a new type of legislative covered bond, obligations à l’habitat (OHs).