Finland’s Ålandsbanken launched its largest ever covered bond on Tuesday, a Eu250m no-grow five year issue that the issuer’s head of group treasury said represented successful pricing and diversification, even if it had to pay up for the sub-benchmark size.

Finland’s Ålandsbanken sold its largest single tranche covered bond on Tuesday, a Eu150m four year issue backed by a Finnish cover pool, and plans to return before year-end with a krona-denominated inaugural covered bond out of a Swedish cover pool.

Ålandsbanken is aiming to increase the share of covered bonds in its funding profile, according to an official at the issuer, as it prepares to go on a roadshow linked to plans for a euro deal backed by its cover pool of Finnish residential mortgages.

Ålandsbanken made its covered bond debut with a Eu200m dual tranche issue yesterday (Wednesday), and its group treasurer said it is pleased to have tapped the market after a lengthy lead-up.