Jyske Bank and BRFkredit are planning to merge, they announced on Monday, in a move that will step up competition in the Danish banking industry, with the potential for steep growth in mortgage lending for the combined entity and a tightening of BRFkredit bond spreads among effects cited.
Danske Bank could soon emerge with the first Nordic CoCo transaction, after having yesterday (Wednesday) announced that it will next week meet with investors in connection with a potential euro Additional Tier 1.
Pohjola Bank priced a Eu1.5bn dual tranche senior unsecured deal on Monday that comprised a fixed rate issue in the seven year “sweet spot”, but FIG flow activity was otherwise limited this week.
Nykredit Realkredit sold its tightest syndicated Swedish krona covered bond today (Thursday), a Skr5.5bn (Eu614m, Dkr4.58bn) one year issue, after on Monday kicking off the latest round of auctions for refinancing of ARM bonds.
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.
Swedbank priced the second Nordic bank capital trade of the year on Monday, a Eu750m 10 year non-call five Tier 2 transaction that an official at the issuer said was launched in anticipation of final capital requirements from the Swedish FSA.
Realkredit Danmark released its 2013 full year results on Friday, reporting a Dkr158m increase in net profit to Dkr2.612bn (Eu350m), up 6% compared with 2012. It said that this captures a positive trend in core activities as well as higher funding costs and higher impairments.
The Danish government and several opposition parties last Thursday (6 February) agreed on legislation aimed at reducing refinancing risk in the country’s mortgage system, after the central bank said S&P had made a positive statement about the bill.
Sweden’s Nordea was one of three issuers that reopened the FIG bond market after a week-and-a-half without supply on Monday, pricing a Eu1.25bn seven year senior unsecured deal. SEB followed suit on Wednesday with a Eu1bn deal, also in the “sweet spot” seven year maturity.
Finland’s OP-Pohjola Group is seeking to fully acquire Pohjola Bank, having today (Thursday) announced a tender offer for all the shares of the bank that it does not already own.