Spain

Ibercaja has closed the order books for a Eu500m five year cédulas issue, which is due to be priced at the tight end of guidance later today (Tuesday).

Westdeutsche Immobilienbank has wrapped up a Eu500m three and a half year issue this (Monday) morning and Ibercaja is soft-sounding for a similarly sized five year deal.

In brief: Ibercaja is expected to launch its first benchmark covered bond early next week, while Caja de Ahorros de Murcia has mandated leads for a new issue.

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.

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.

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.

Banca Carige is likely to set the maturity of its debut benchmark covered bond at seven years, according to market participants. Meanwhile, a Spanish name is said to be looking closely at the market with the possibility of an imminent deal and Dexia’s Luxembourg registered arm is aiming to settle some unfinished business.

Cajamar faced a fatigued cédulas hipotecarias market when it launched its public debut yesterday (Thursday) morning, but the issuer benefitted from an extensive roadshow and, according to syndicate officials at the leads, was right to announce that the issue could be sub-Eu1bn.

In brief: Cajamar has closed books on a Eu750m five year cédulas hipotecarias issue that will be priced at 85bp over mid-swaps.

A Eu1bn five year Caja de Ahorros del Mediterráneo cédulas hipotecarias on Friday concluded a difficult week in the covered bond market to the issuer’s and the leads’ satisfaction. This week looks set to be quiet again, with two or three issues expected, although market participants were this (Monday) morning more relaxed about the outlook than they were last Monday.