KLP gets approval for Boligkreditt, eyes krone debut before summer

Apr 10th, 2014

Norway’s KLP Banken is eyeing a first mortgage-backed covered bond issue out of new entity KLP Boligkreditt in the coming months, after having received approval for the specialist institution from the Norwegian FSA (Finanstilsynet) last month.

KLP portraitKristian Lie-Pedersen, analyst at KLP Banken, told The Covered Bond Report that it is hoping to launch the first issue from KLP Boligkreditt before the summer. The issuer will focus on Norwegian krone issuance.

Lie-Pedersen said that the FSA gave approval for KLP Boligkreditt on 31 March and that the new institution is already established. KLP is now finalising rating work with Moody’s and approval to transfer mortgage-related data to the Boligkreditt, as well as other internal requirements, he added.

According to Lie-Pedersen, KLP has Nkr11bn-Nkr12bn (Eu1.34bn-Eu1.46bn) of residential mortgages on its balance sheet.

NordLB analysts noted that KLP Banken already has a public sector covered bond issuer, KLP Kommunekreditt, which has some Nkr16.8bn of covered bonds outstanding.

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