The Netherlands

Achmea Hypotheekbank has underlined that it has rectified administrative errors in its covered bond programme that resulted in it failing its asset cover test (ACT) five times between February 2007 and July this year.

Achmea Hypotheekbank's Eu10bn covered bond programme failed its asset cover test (ACT) on five separate occasions between its first deal in February 2007 and July this year due to calculation errors. The bank has now acted to rectify the problem, which is believed to be the first time a covered bond has suffered such a lapse.

Banco Espírito Santo priced only its second covered this (Thursday) morning and the final size was enough to make it the largest covered bond in over a month. Those outside the deal said it was a pleasant surprise that two benchmarks could be priced during a bumpy week.

*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.