NN Bank issued a €500m 15-year on Wednesday, in line with fair value at 12bp over mid-swaps with demand of €2.5bn. Joint leads on the deal were HSBC, LBBW, Natixis, Rabobank and UniCredit.
As with many deals issued this week, the spread was aggressively tightened by 5bp from the initial level, following compelling early order book momentum.
The 0.05% September 2035 was priced at 99.538 to yield 0.081%, representing a 37.4bp pick up against Bunds.
The Dutch covered bond was the second from NN Bank’s newly established soft bullet programme that was set up to increase the duration of covered bond funding. Issuance beyond 10 years was never tested under its original conditional passthrough programme, due to uncertainty about deal execution.
NN Bank’s debut 10 year soft bullet deal was trading at 10bp before the announcement of the new 15 year, implying a minimal 2bp spread for the additional five years of curve extension.
“It went well, they landed on fair value, it was a really solid outcome,” said a lead manager on the deal, referring to the “phenomenal technical backdrop” that is being shaped by soaring redemptions, limited supply prospects and aggressive European Central Bank buying.
“It feels like this mood could carry on for as long as people want to issue. Investors are cash-rich and there’s not enough supply, so make hay while the sun shines,” said the NN Bank lead manager.
CCDJ’s €500m September 2025, issued on Thursday through joint leads Barclays, LBBW, RBC Capital Markets, Société Générale and UBS, also offered no premium.
With final demand approaching €2bn, the spread was set at 9bp from 12bp initially. It compared to 8bp for the issuer’s outstanding January 2024 and 7.5bp for Toronto Dominion’s more recently issued June 2025.
The €500m 0.01% September 2025, which is rated Aaa/—/AAA, was priced at 101.773 to yield minus 0.341% and delivered a 35.7bp pickup over Bunds.
At the same time, Landesbank Saar issued a 0.01% €250m public sector Pfandbrief due September 2030, with demand of €560m at 8bp over mid-swaps from 12bp initially via joint leads Dekabank and Helaba.
The bonds were priced at 101.63 to yield minus 0.15%, giving a 34.9bp pickup against Bunds.
Elsewhere in Germany, Bausparkasse Schwäbisch Hall, which is rated Aa1, mandated DZ Bank to arrange a series of fixed income investor calls commencing September 23, with a view to issuing a euro mortgage Pfandbrief, rated Aaa, sometime in the fourth quarter.