Jyske returned to the senior unsecured market for possibly the last time on 23 May after in March selling its biggest capital trade, a four times covered Eu300m 12 year non-call seven Tier 2 that investors welcomed as a rare opportunity to buy a yieldy euro trade from the Dane.
Skandinaviska Enskilda Banken (SEB) took advantage of a strong post-FOMC market to attract some $3bn of demand to a $600m perpetual non-call five Additional Tier 1 on 16 March, its first AT1 transaction in over two years.
Nordea Mortgage Bank, a new Finnish issuing entity established following a demerger of Nordea Bank Finland, is looking into possibilities in the euro market and could launch its first euro covered bond in the fourth quarter of 2016, according to an official at Nordea.
OBOS Boligkreditt issued its first covered bonds on Monday, selling two Nkr2bn FRNs while its parent repurchased Nkr2.9bn of senior unsecured debt, and an official at the new Norwegian issuer said it expects “a high growth rate” in the coming years after establishing its name in the market.
A debut, dual tranche DKK1.5bn equivalent AT1 for Jyske Bank on 7 September was more than twice oversubscribed, and comprised the first benchmark Swedish krona AT1 from a non-domestic name, with a Jyske official deeming the result a testament to years of work in the Swedish market.
Bids were strong throughout the latest Danish refinancing auctions, with non-domestic investors in particular finding value, as Nykredit hailed improving recognition of its euro FRNs and Realkredit Danmark priced a Skr4.35bn issue with the slimmest pick-up versus domestic paper in recent years.
SpareBank 1 Boligkreditt sold its first 10 year euro benchmark on Tuesday, with the possibility of offering a positive yield at the long end a factor, according to the issuer’s COO, who said erroneous reports on its substitute assets did not affect the Eu1bn deal’s successful outcome.
The opening sales of the latest Danish refinancing auctions yesterday and today achieved encouraging bid-to-covers, with market participants attributing the demand to the spreads being attractive against a range of alternatives, and FRNs sold next week are expected to be well received.
Norway’s OBOS-banken is set to issue a debut Norwegian krone covered bond through a new wholly-owned covered bond issuer in the third quarter, having on Wednesday received a provisional covered bond rating from Moody’s, as it negotiates a split from issuer Eika Boligkreditt.
New Nykredit Realkredit “senior resolution notes” (SRNs) are positive for holders of its covered bonds, Moody’s said yesterday (Thursday), after S&P revised its outlook on the issuer from negative to stable and the Danish issuer reopened the euro senior market with its second such deal.