The Netherlands

At least two banks have mandated for covered bonds that are expected next week, after supply this week of Eu10.7bn.

Moody’s affirmed the Aa2 rating of Achmea Hypotheekbank’s mortgage covered bonds yesterday (Tuesday) after the Dutch issuer restructured some aspects of its programme.

Standard & Poor’s has revised the outlook on SNS Bank from stable to negative because it expects the Dutch group to continue to be pressured on bank earnings and asset quality.

Berlin-Hannoversche Hypothekenbank will today (Wednesday) price a Eu600m six year Pfandbrief at the tight end of guidance. It takes past Eu6bn the amount of Eu500m-plus issues to have hit the market this week, coming after benchmarks for issuers such as ING Bank and Crédit Agricole.

All four institutions that had indicated that they would come to market this week opened their order books today (Tuesday), but had little trouble achieving price and size targets in the middle of or better than those being aimed for.

Swedbank Mortgage will today (Monday) price a seven year covered bond at the tight end of guidance of the 60bp over mid-swaps area. The deal marks the beginning of what looks set to be a busy week in the covered bond market as other issuers have rushed to secure their place in a line-up that is already four institutions deep.

Kees Westermann has left Clifford Chance for Linklaters, where he will head a new structured finance practice for the firm in Amsterdam that will take in covered bonds.

SNS Bank was in no rush to launch a Eu1bn seven year deal that was priced on Wednesday, an official at the Dutch bank told The Cover, and the extra time it gave investors paved the way for a successful outcome.

SNS Bank opted for a Eu1bn size for a seven year covered bond launched yesterday (Wednesday) to ensure a good performance, said a syndicate official at one of its leads, although the size and quality of the order book would have allowed for a larger deal. Meanwhile, Aktia Real Estate Mortgage Bank hit the tight end of guidance but nevertheless paid a premium for the issue’s Eu500m size.

SNS Bank and Aktia Real Estate Mortgage Bank have been in the market today (Wednesday), building books for new covered bond issues after the pricing of benchmarks for Dexia Kommunalbank Deutschland and Erste Bank yesterday (Tuesday).

Deals for Dexia Kommunalbank and Erste Group got the primary market off to a strong start this (Tuesday) morning, with both issues oversubscribed and executed swiftly. Further issuance is expected this week, with SNS Bank already sounding out a new issue.

SNS Bank has mandated lead managers for a new covered bond that is expected this week, and several other issuers are said to be candidates for issuance in the coming days.