Skandinaviska Enskilda Banken (SEB) kicked off Swedish banks’ Q2 results announcements on Tuesday with pre-tax profits of Skr5.3bn (Eu570m) that were 14% ahead of consensus expectations, with strong commission revenues offsetting a fall in net interest income.
SEB took advantage of a window of stability early this week to issue a Eu1bn (Skr9.36bn) seven year covered bond on Tuesday, but both it and SCBC, which launched a Eu500m seven year into a deteriorating market on Thursday, had to revise their pricing expectations.
Länsförsäkringar Bank (LF Bank) sold its inaugural Additional Tier 1 issue on Tuesday, a Skr1.2bn (Eu128m) perpetual non-call five issue that achieved tight pricing relative to international markets and also LF’s Swedish peers in the domestic market. Meanwhile, SBAB issued a Skr1bn 10 year non-call five Tier 2.
SBAB launched its first benchmark euro senior unsecured floating rate note since January 2012 on Wednesday, a Eu750m (Skr6.94bn) three year issue that the issuer’s head of investor relations said is likely to be followed by a euro benchmark covered bond by the end of the third quarter.
Swedbank reopened the euro FIG market yesterday (Thursday) with a Eu750m seven year senior unsecured fixed rate issue that attracted Eu1.9bn of demand and was priced at the tight end of guidance, and bankers said other issuers would be encouraged to come to market.
The Swedish FSA (Finansinspektionen) has published a methodology for assessing three types of risk under Pillar 2 – credit-related concentration risk, interest rate risk in the banking book, and pension risk – that will be used in capital requirements from the third quarter.
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.
Länsförsäkringar Hypotek sold a Eu500m (Skr4.64bn) seven year covered bond at the tight end of its pricing expectations yesterday (Thursday), according to an official at the issuer, who said that it timed its deal to avoid competing supply from the Nordics and elsewhere.
Swedbank on Wednesday sold a well-received £300m (Eu414m, Skr3.87bn) four year senior unsecured deal, making a quick return to the sterling market after having sold a £500m three year covered bond on 25 March, with an official at the issuer noting the diversification on offer and the attractive funding levels thanks to favourable currency swaps.
Realkredit Danmark sold a Skr4.3bn (Eu465m) three-and-a-half year floating rate note on Tuesday that a syndicate banker at one of the leads said had succeeded in spite of selling pressure in Swedish covered bonds, while a Norwegian krone deal from the issuer imminent.