Norway’s Eika Boligkreditt met with strong demand for its first euro benchmark covered bond since early 2013 yesterday (Wednesday) and benefitted from the prevailing negative net supply, according to an official at the issuer, which returned to a Eu500m deal size after two Eu1bn transactions.

Norway’s Eika Boligkreditt, formerly Terra BoligKreditt, will go on a roadshow next week ahead of a potential euro deal, which would be its first benchmark covered bond in the currency since January 2013 after a strong year in the domestic market led it to delay such a move, according to an official at the issuer.

Eika Boligkreditt, formerly known as Terra BoligKreditt (TBK), posted a 240% rise in pre-tax profit in 2012 following an increase in lending activities and in margins on lending, according to an official at the Norwegian issuer.

A Eu1bn 10 year Terra BoligKreditt covered bond launched yesterday (Wednesday) was only the second jumbo from the Norwegian issuer and its first euro benchmark in the long maturity, which the issuer’s CEO said it had been hoping to tap for some time.

Kristian Fiskerstrand, vice president, funding at Terra BoligKreditt, spoke with Nordic Financial Institutions & Covered about the issuer’s funding plans for 2013, a new name for the Terra alliance, and regulatory moves in Norway.

Terra BoligKreditt launched its first jumbo covered bond on Tuesday, a Eu1bn five year deal that Terra’s CEO said involved 50%-60% more investors than in previous, smaller transactions.

A covered bond roadshow for Norway’s Terra BoligKreditt was the only Nordic FIG primary market-related activity this week despite markets being open, said syndicate bankers, while Nordic covered bond secondary spreads have been stable.

Norway’s Terra BoligKreditt announced a mandate for a new euro covered bond benchmark on Monday that, subject to market conditions, will follow a pan-European roadshow starting 22 October and could be the issuer’s first jumbo sized deal.