RD preps first Swedish syndicated covered

Realkredit Danmark is planning its first syndicated sale of a Swedish krona covered bond, which could emerge next week after a day of investor meetings today (Thursday) in Stockholm.

The mortgage credit institution on Monday announced that it has hired Danske Bank, Handelsbanken Capital Markets and Swedbank to arrange the meetings, and that a Swedish krona denominated covered bond could follow. The covered bonds would be issued out of Capital Centre T.

RD has issued Swedish krona covered bonds twice before, most recently in May 2013. It has a Skr5.6bn (Eu63.37m) issue due in April that the targeted syndicated deal would refinance, and a Skr4.8bn deal maturing in April 2015.

Jesper Tvede, head of financial risk management at Realkredit Danmark, said that the issuer decided to switch to a syndicated process with the aim of achieving better pricing and reaching more accounts. He said the issuer is eyeing the latter part of next week to launch a deal, subject to market conditions.

“The deal is mostly for refinancing, although it would also bring in a little bit of new money,” said Tvede.