Handelsbanken returns to strategic sterling mart with £400m FRN
May 2nd, 2013
Svenska Handelsbanken sold its first public sterling issue of the year on Tuesday, a well-received £400m three year floating rate note.
The deal attracted some £500m of demand and was priced at 40bp over three month Libor via HSBC and Nomura, after initial price thoughts of the low 40s area and then guidance of 40bp-42bp over.
Bankers said the deal went well, as have several sterling transactions recently. GE Capital was in the market the same day as Handelsbanken, and Münchener Hypothekenbank increased a recently launched £200m three year floating rate covered bond by £100m this week.
Handelsbanken’s last public sterling deal was a £300m 10 year senior unsecured issue on 26 November priced at 118bp over Gilts.
Thomas Åhman, deputy head of treasury at Handelsbanken, previously told Nordic FIs & Covered that the sterling market is strategically important for the bank given the growth of its UK business.
Handelsbanken’s subsidiary, Stadshypotek, sold a £250m three year floating rate covered bond at 23bp over three month Libor on 11 February. Nordea sold a £400m three year floating rate note at 50bp over on 7 February.
