Spain

Italy’s UBI Banca will today (Thursday) price a Eu500m five year issue on the back of modest demand, while DnB Nor Boligkreditt yesterday sold its first dollar benchmark covered bond and Canadian Imperial Bank of Commerce priced its first covered bond in the Kangaroo market.

Spain’s Unicaja was keen to use the launch of a cédulas hipotecarias issue this week as an opportunity to engage with investors on issues facing the country’s financial system and to highlight the savings bank’s individual story, an official at the issuer told The Cover.

Skandinaviska Enskilda Banken will today (Wednesday) price a Eu1bn seven year issue at the tight end of revised guidance after meeting with strong demand for the first Swedish euro benchmark since June. Meanwhile, Italy’s UBI Banca is gauging interest for a new issue, Canadian Imperial Bank of Commerce has opened books for an Australian dollar debut, and a mandate for a debut off an innovative programme has been added to the deal pipeline.

Spain’s Unicaja will today (Tuesday) price a Eu750m five year cédulas hipotecarias issue, more than a marketed Eu500m minimum deal size, although syndicate bankers away from the leads said the deal had at times appeared to struggle. Issuance was otherwise restricted to a tap and floating rate note, although there are rumours of deals in the pipeline and CIBC has mandated for an Australian dollar debut.

Italy’s UniCredit launched a Eu1bn maximum seven year issue this (Monday) morning that syndicate bankers away from the deal complimented for being “bang-on”, while Spain’s UniCaja is testing investor interest for a Eu500m minimum five year cédulas.

Fitch cut mortgage backed covered bonds issued by Spain’s Cajastur from AAA to AA+ and placed them on Rating Watch Negative yesterday (Thursday), because of a downgrade of the issuer the previous day.

Banco Popular Español achieved a high hit rate on an exchange offer that was completed yesterday (Monday), with around Eu1.4bn of Eu3.5bn of bonds eligible for the exercise being swapped into a new, Eu1.75bn five year cédulas hipotecarias issue – the maximum that the Spanish bank could raise.

Abbey National Treasury Services today (Monday) launched a seven year covered bond that is the euro benchmark market’s first new issue since fellow UK issuer Lloyds TSB Bank sold a Eu2bn 10 year deal last Wednesday. Meanwhile, Banco Popular Español has completed an exchange offer and the first jumbo Pfandbrief since June is being prepared.

Fitch placed AAA mortgage covered bonds issued by Cajamurcia on Rating Watch Negative yesterday (Monday), after placing the issuer on RWN on Friday because its integration into a new banking group with three other cajas was approved.

Fitch downgraded Spanish bank La Caixa from AA- to A+, on stable outlook, yesterday (Monday), because of challenges to the bank’s asset quality posed by a downturn in the Spanish property market and the country’s weak economy.

SNS Bank will today (Tuesday) price the second long dated Dutch benchmark covered bond in a week, while Banco Popular Español has set the spreads for an exchange that is open until Friday and a Swedish covered bond issuer has set up a US MTN programme.

Fitch placed Caja de Ahorros de Murcia and three other Spanish banks on Rating Watch Negative on Friday, because the General Assemblies of the four cajas approved an integration contract to form a banking group through an Institutional Protection Scheme (SIP). The rating agency said the SIP contract is expected to include a legally-binding cross-guarantee mechanism encompassing solvency and liquidity.