Stadshypotek issued its first covered bond out of a Finnish cover pool today (Tuesday), selling a thrice-subscribed Eu500m 10 year issue that progressed smoothly, in contrast with more turbulent conditions in other markets, with NordLB pulling a senior trade amid pressure on European banks.
DNB Boligkreditt attracted Eu2bn of orders to a Eu1.5bn 10 year covered bond today (Tuesday) that is the largest euro benchmark in the maturity since 2014 and comes after a slew of long-dated supply.
BRFkredit sold a EUR750m seven year covered bond on Wednesday that bankers said was the most solid deal of the week, benefitting from a bounce in sentiment, after Stadshypotek sold a EUR1bn six year issue on Monday that was only just oversubscribed amid weaker conditions.
SpareBank 1 SMN sold its first euro benchmark senior issue in two years on Wednesday, attracting over €1bn of demand for a €500m five year, which bankers said benefitted from strong demand for the rare issuer.
Danske sold its longest benchmark senior unsecured bond on Wednesday, a Eu1bn seven year issue that attracted over Eu2.3bn of demand. It issuer also last week launched its first benchmark, syndicated Norwegian krone covered bond, as part of a planned Norwegian expansion.
SEB sold a €1bn senior unsecured FRN with an uncommon four year maturity on Wednesday, opting for this partly to tap a part of the curve vacated in light of upcoming TLTROs, according to SEB’s John Arne Wang, with eventual demand of over €1.3bn surpassing expectations.
Denmark’s Jyske Bank sold its first subordinated debt transaction in 10 years yesterday (Thursday), a SEK1bn (€108m, DKK801m) 10NC5 Tier 2 issue, opting for the Swedish krona market because of the flexibility it offers, according to the group’s head of debt IR and capital markets funding.
Low rates are the most significant risk to Danish and Finnish banks in the next two years, according to delegates surveyed by Fitch this week, with household indebtedness considered the biggest risk for Swedish banks and oil prices for Norwegians, but the rating agency said Nordic banks are well positioned for the oncoming “storm”.
Iceland’s Arion sold a €300m (ISK41.9bn) three year senior unsecured bond on Tuesday, its second public euro-denominated issue, attracting mainly real money accounts and confirming the ability of Icelandic banks to access international markets at lower costs, according to the bank’s CEO.
Jyske Bank sold a debut €500m fixed rate senior unsecured benchmark bond yesterday (Thursday), and an official at Jyske explained that it had moved away from its previously preferred FRN format because of a changing regulatory environment. SBAB on Monday sold its first fixed rate senior issue in two years.