The Netherlands

*Excludes German, French, Spanish and Nordic issuance.

ING achieved the largest size of the week when it priced its second covered bond yesterday (Thursday) afternoon. The issuer said the eye-catching 50bp over mid-swaps spread was a price worth paying given the depth of demand it attracted.

ING has opened books this morning on what is only its second covered bond. The 10 year benchmark mortgage bond’s attractive pricing drew strong demand in a crowded marketplace, although the eye-catching spread split opinion.

Following the launch of NIBC Bank’s first deal off a Eu7bn covered bond programme, The Cover spoke to an official at the Dutch bank about its issuance strategy and any plans for its German collateral.

SNS Bank printed its debut covered bond this morning as UBS placed a Swiss franc trade with one institutional account. The Sfr80m two year issue carries a 3.295% coupon.

ING Bank flew in the face of prevailing wisdom yesterday (Thursday), paying 30bp over mid-swaps to sell a Eu1bn five year structured covered bond – its first, at that – which showed that rumours of the primary market’s death had been greatly exaggerated.

Covered bond market participants were suffering from shock today (Thursday) after ING Bank opened books for its debut issue late this morning. But by early afternoon they were celebrating the reopening of a primary market that had been expected to remain moribund until perhaps after Easter at the earliest, albeit with a five year deal at 30bp over mid-swaps.

Canadian Imperial Bank of Commerce plans to roadshow a new covered bond programme early in the second quarter, following in the footsteps of not only those officially in the pipeline, but a variety of other issuers who have been visiting investors but adopting a lower profile.

ING Bank NV has mandated ABN Amro, Barclays Capital, HSBC and ING Wholesale Banking as joint leads for its inaugural covered bond, which will be launched after a European roadshow starting in the week of March 3. Berlin-Hannoversche Hypothekenbank is also aiming to launch a three year mortgage Pfandbrief that week.

Panellists at the IMN covered bond conference voiced their approval today of the Netherlands’ new legislative approach, set to be implemented on 1 July. They defended its principle based approach against charges that a prescriptive law would be more appropriate in the current climate, saying that the flexible framework would prove its worth in the long-run.

Rating agency representatives yesterday afternoon discussed their various methodologies and the weight they give to legislative backing, a key issue as the market sees new structured issues from Canada and previous structured issuers, such as the UK, on the cusp of introducing a legislative framework.

The Dutch Ministry of Finance has begun consultation on a Covered Bond Decree, which it hopes will come into effect on July 1, 2008. While the move has been generally welcomed by Dutch banks, it is unclear whether all issuers will reap equal rewards from the new framework.