4ALKûWASûSUBSEQUENTLYûREVISEDûTOûBP û
PLUSûORûMINUSûBP ûWITHûBOOKSûABOVEûõBNû
4HEûSPREADûWASûTHENûlXEDûATûBPûANDûTHEû
SIZEûATûõMû4HEûBOOKûSTOODûATûõBNûATû
REOFFER
"ANKERSûSAIDû!RKEASûWASûTHEûSTRONGERûOFû
THEûTWOûDEALSû"ESIDESûTHEûMATURITY ûTHEYû
attributed this to the relative rarity of the
name and an attractive spread compared
WITHûTHEûLASTûCOMPARABLEû&RENCHûSUPPLY
4HEûLASTûEUROûlVE
YEARûBENCHMARKûFROMû
France was a €750m issue for Societe
Generale that priced at minus 6bp on
3EPTEMBERûû4HATû3EPTEMBERûûISSUEû
WASûTRADINGûATûMINUSûBP ûBID
The new issue paid a concession of around
BP ûBASEDûONûTHEûBIDûSIDEûOFû!RKEASûCURVE
GETTING AHEAD
SCBC was cognisant of the deeper demand
INûTHEûlVE
YEARûPARTûOFûTHEûCURVE ûSAIDûAû
BANKERûATûONEûOFûITSûLEADS
(OWEVER ûITûWASûLOOKINGûTOûEXTENDûITSû
curve opportunistically in anticipation of
competing supply from its peer group and
POTENTIALûSPREADûWIDENINGûINûTHEûNEARûTERM
It went out with guidance of mid-swaps
PLUSûBPûAREAûFORûTHEûSEVEN
YEARûDEALû4HEû
SPREADûWASûlXEDûATûBPûWITHûBOOKSûOVERû
õMû4HEûSIZEûWASûLATERûSETûATûõM
7HENûANNOUNCINGûTHEûMANDATE ûTHEû
issuer also said it was open to reverse
enquiries for a potential tap of its
OUTSTANDINGûõMû!PRILûû!ûTAPûWASû
ADDEDûFORûAûMINIMUMûSIZEûOFûõMûATûAû
SPREADûOFûBPû)TûULTIMATELYûPRINTEDûõM
4HEûCOMBINEDûBOOKûSTOODûATûOVERûõM
The seven-year paid a new issue premium
of around 6bp versus the bid side of SCBC’s
CURVE
h)TûDIDûLOOKûFAIRLYûWIDEûTOûSTART vûSAIDûAû
BANKERûAWAYûh4HEYVEûDONEûQUITEûAûLOTûINû
covereds this year and did a seven-year back
INû*ANUARY ûSOûPERHAPSûTHEREûAREûSOMEû
INVESTORSûWHOûAREûFULLûONûTHEûNAMEv
4HEû3"!"ûSUBSIDIARYûHADûALREADYûISSUEDû
three euro benchmark covered bonds this
YEAR ûTOTALINGûõBN
4HEûTAPûOFûTHEû!PRILûSûALSOûPAIDûUPû
BP
TAKE YOUR FANCY?
SCBC took the novel approach of inviting
REVERSEûENQUIRIESûFORûTHEûTAP ûRATHERûTHANû
ANNOUNCINGûITûOUTRIGHT ûSOûITûHADûTHEû
opportunity to assess demand and investors’
price expectations without being beholden
TOûAûDEAL
4HEûISSUERûHADûNOTûRECEIVEDûSPECIlCû
REVERSEûENQUIRIESûBEFOREûTHEûTRADE
!ûBANKERûAWAYûSAIDû3#"#SûSTRATEGYûWASû
sensible as it meant they were less exposed
IFûDEMANDûWASûNOTûFORTHCOMING
h)TSûTHEû$#-ûEQUIVALENTûOFûPUTTINGûYOURû
PHOTOûONû4INDER vûHEûSAID
4HEû.ORDICSûAREûAMONGûTHEûlRSTû%UROPEANû
banks to exit their blackout periods and are
therefore good candidates for supply in the
NEARûTERMû-ANYûESTABLISHEDûCOVEREDûBONDû
ISSUERSûREPORTEDûLASTûWEEK ûSUCHûASû$." û
.ORDEAûANDû3VENSKAû(ANDELSBANKEN
Swedbank released its Q4 results last
4UESDAY ûINûWHICHûITûOUTLINEDûPLANSûTOûISSUEû
OVERû3+RBNûõM ûOFûCOVEREDûBONDSûINû
THEûFOURTHûQUARTERû4HEûBANKûTOLDû)&2ûITûISû
LIKELYûTOûFULlLLûTHEûBULKûOFûTHESEûNEEDSûINûITSû
DOMESTICûMARKETHELABA STRUGGLES
(ELEBASûTAPûONû-ONDAYûEVINCEDûTHEûEXTENTû
OFû0FANDBRIEFEûWIDENING ûBUTûWASûUNABLEûTOû
TIGHTENûPRICINGûORûINCREASEûTHEûSIZE
The original €750m February 2024 issue
WASûPRICEDûATûMINUSûBPûINû&EBRUARYû û
among the tightest spreads ever for a euro
benchmark covered bond in the primary
MARKET
0RE
ANNOUNCEMENT ûTHEûDEALûWASûTRADINGû
ATûAROUNDûMINUSûBP ûBID ûACCORDINGûTOû
4RADEWEBûlGURES
It was reopened with guidance of mid-
SWAPSûMINUSûBPûAREAûFORûAûMINIMUMûTAPû
SIZEûOFûõM
3OMEûTWOûHOURSûLATER ûTHEûSPREADûWASû
lXEDûATûMINUSûBPûANDûTHEûSIZEûATûõM û
WITHûNOûBOOKûUPDATEûPROVIDED
Bankers at leads ABN AMRO, Erste, Helaba,
Natixis and Societe Generale declined to
comment on whether the deal was fully
SUBSCRIBEDMUNHYP ESG PFAND DUE AFTER
OVERHAUL, IPTS PIVOTALMUENCHENER HYPOTHEKENBANK is ready to return
to the Sustainable covered bond market it
KICKEDûOFFûFOURûYEARSûAGO ûBUTûBANKERSûSAYûITû
must think carefully about the pricing of the
h%COLOGICALû%3'vû0FANDBRIEF
-UN(YPûISSUEDûTHEûlRSTû3USTAINABLEû
COVEREDûBONDûINû ûAûõMû%3'ûlVE
YEARûTHATûlNANCEDûLENDINGûTOûHOUSINGû
COOPERATIVES
The bank has remained on the sidelines
SINCE ûBUTû'REENûANDû3OCIALûCOVEREDûBONDSû
HAVEûGROWNûSTRONGLY ûWITHûISSUANCEûNOWû
coming from jurisdictions as varied as
'ERMANY û.ORWAYûANDûnûMOSTûRECENTLYûnû
3OUTHû+OREA
The German cooperative bank completed
Aû%UROPEANûROADSHOWûTHROUGHûABN AMRO,
DZ Bank and HSBCûONû4HURSDAYû4HEûBONDûISû
EXPECTEDûTOûHAVEûAûõMûSIZEûANDûAûLONGû
lVE
YEARûMATURITY ûANDûISûSETûTOûBEûLAUNCHEDû
EARLYûTHISûWEEK
!SûTHEûCOVEREDûBONDûMARKETûHASûADJUSTEDû
TOûREDUCEDû%#"ûBUYING ûSOMEû'ERMANû
issuers have found primary market demand
limited at the levels indicated by their
SECONDARYûCURVESHelaba struggled to tap a February 2024
0FANDBRIEFûONû-ONDAY ûPRINTINGûITSû
MINIMUMûSIZEûOFûõMûWITHOUTûDISCLOSINGû
AûBOOKûUPDATE ûANDûPRICINGûINûLINEûWITHû
GUIDANCEûATûMINUSûBP
#LAUDIAû"AERDGES
+OCH ûHEADûOFûDEBTû
investor relations and client acquisition at
-UN(YP ûISûCONlDENTûDEMANDûFROMû%3'û
accounts will underpin the deal if markets
TURNûFORûTHEûWORSE
h9OUûHAVEûAûBROADER ûMOREûROBUSTûINVESTORû
BASEûTHANûFORûAûNORMALûBOND ûANDûTHEREûISûAû
LOTûOFûDEMANDûANDûNOTûSOûMUCHûSUPPLY vûSHEû
TOLDû)&2
h-OSTûOFûTHEûPOTENTIALûINVESTORSû)ûMETûONû
THEûROADSHOWû)VEûNEVERûMETûBEFOREû9OUû
wouldn’t attract these names with a normal
0FANDBRIEFv
"ASEDûONûTHEûBIDûSIDEûOFû-UN(YPSûCURVE û
FAIRûVALUEûFORûTHEûNEWûLONGûlVE
YEARûISû
AROUNDûMINUSûBP
Bankers away from the deal doubted it
COULDûBEûDONEûCLOSEûTOûTHISûLEVELûnûNOûEUROû
benchmark covered has been priced with a
double-digit spread through mid-swaps
SINCEû!UGUST
4HEYûSAIDû-UN(YP ûOFTENûONEûOFûTHEû
TIGHTESTûPRICINGûCOVEREDûBONDûISSUERS ûMAYû
HAVEûTOûPAYûUPûMOREûTHANûITûISûUSEDûTO
“This issuer tends to start tight and then
NOTûTIGHTENûBYûMUCH ûWHICHûISûAûFAIRû
APPROACH ûBUTûRIGHTûNOW ûTHEûBEAUTYûLIESûINû
THEûSTARTINGûPOINT vûONEûOFûTHEûBANKERSû
AWAYûFROMûTHEûDEALûSAIDûh%VERYTHINGû
DEPENDSûONûHAVINGûAûQUICKûANDûSOLIDûlRSTû
UPDATEv
4HEû(ELABAûTAPûANDûAûRECENTûõBNûlVE
YEARûFORû).'
$I"A ûPRICEDûATûMINUSûBPûONû
/CTOBERûûANDûTRADINGûAROUNDûREOFFER ûAREû
deemed more relevant comparables than
SQUEEZEDûSECONDARYûCURVESRESI, COMMERCIAL MIX UNIQUE
4HEûPROCEEDSûFROMû-UN(YPSû%COLOGICALû
%3'û0FANDBRIEFEûWILLûBEûUSEDûTOûlNANCEû
'REENûMORTGAGEûLOANSûANDûCERTIlEDû
SUSTAINABLEûCOMMERCIALûMORTGAGEûLOANS
)Nû ûTHEûBANKûBEGANûOFFERINGûITSû
CUSTOMERSû'REENûLOANSûFORûTHEûlNANCINGûOFû
ENERGYûEFlCIENTûHOUSING ûWITHûAûDISCOUNTEDû
INTERESTûRATEû7HILEûESTABLISHINGûTHISû
PRODUCTûANDûBUILDINGûAûSUFlCIENTûPORTFOLIOûOFû
'REENûLOANSûTOOKûTIMEûnûRESULTINGûINû
-UN(YPSûISSUANCEûHIATUSûnûITûNOWûALLOWSû
EASYûIDENTIlCATIONûOFûGREENûASSETS
)NVESTORSûAPPRECIATEûTHISûEFFORT ûSAIDû
"AERDGES
+OCHû3HEûSAIDûTHEû'REENûLOANSû
discounted interest rate shows sustainability
ISûNOWûATûTHEûCOREûOFû-UN(YPSûBUSINESSû
MODEL
h)TSûNOTûJUSTûABOUTûTHEûBOND ûWEû
TRANSFORMEDûOURûBUSINESSûMODEL ûANDûTHATûISû
WHATûINVESTORSûREALLYûLIKE vûSHEûSAID
The dual residential and commercial
collateral and use of proceeds makes theBONDS COVERED BONDS