Swedbank attracted the most demand of any euro benchmark covered bond this year on Wednesday, pricing a EUR1.25bn five year issue at only a modest new issue premium (NIP), and SEB yesterday (Thursday) built upon the template to issue a EUR1.5bn five year at the same level.

Swedbank Hypotek reopened the sterling covered bond market after two months without benchmark supply on Wednesday, and although the FRN was priced 10bp wider than preceding deals an official at the issuer said the sterling market still offered attractive funding.

Swedbank Hypotek dispensed with the 144A format it previously used for dollar-denominated issuance when it launched a $1bn (Eu883m, Skr8.23bn) five year Reg S issue on Wednesday, with flexibility cited as a reason for the move.

Moody’s has upgraded Swedbank because it considers that the bank’s credit profile has strengthened, and Fitch revised the outlook on Danske Bank from negative to stable due to lower risk from its Ireland exposure.

Swedbank launched its first euro benchmark covered bond since August 2011 today (Thursday), a Eu1bn seven year issue that attracted strong demand, with the leads taking a cautious approach to execution but able to tighten the spread after a “catchy” opening, said a banker on the deal.

A US$1bn five year Swedbank covered bond launched at the end of March was prompted by positive feedback from US investors and the contrasting fortunes of recent euro and dollar Nordic benchmarks, said the issuer’s head of funding, but the mortgage lender could return to euros later this year.