Santander Consumer Bank Nordic on Wednesday attracted Eu2bn of demand for a Eu750m (Nkr6.50bn) three year senior unsecured benchmark, allowing the issuer to price at the tight end of guidance while enlarging the deal to its maximum targeted size, according to an official at the issuer.
DNB Bolgikreditt made its sterling covered bond debut on Monday with a £250m (Nkr2.90bn, Eu336m) five year floating rate, and an official at the issuer said the maturity, format and currency suited its needs.
Norway came top out of six countries in a Moody’s ranking of how strong different jurisdictions are with respect to eligibility criteria for cover pool assets based on a combination of covered bond law and market practice, while Sweden was first taking into account only the covered bond law.
A new Norwegian Act on Financial Institutions being considered by parliament will amend the country’s covered bond framework so that covered bond issuers are treated the same as banks in the event of insolvency, and will also repeal Norway’s securitisation law.
DNB Boligkreditt sold a Eu500m (Nkr4.23bn) seven year floating rate covered bond last Friday (7 November), building on reverse enquiries to open a new FRN maturity after having tapped a five year through 2014.
Members of the SpareBank 1 alliance in Norway are setting up their own covered bond issuers as a back-up to SpareBank 1 Boligkreditt (SpaBol) because of large exposure limit regulation.
Moody’s upgraded Eika Boligkreditt mortgage covered bonds from Aa2 to Aa1 on Thursday of last week.
A brief payment delay on a covered bond from Norway’s Sør Boligkreditt that matured last month and which was due to an operational error has no credit impact and is extremely unlikely to happen again, according to Moody’s, which rates the issuer’s covered bonds Aaa.
Payment on a Nkr30m (Eu3.66m) maturing covered bond of Sør Boligkreditt, the issuer of Norway’s Sparebanken Sør, was delayed by three days over last weekend because an amendment to the structure three years ago was not correctly registered in a payment system, according to an official at the issuer.
KLP Boligkreditt issued its first covered bond on 5 September, a Nkr500m (Eu60m) five year floating rate note, and an official at KLP Banken said that a next covered bond issue is already being worked on, with Nkr5bn expected by the end of 2015.