Skandiabanken in Norwegian debut with Nkr3bn FRNs

Skandiabanken issued its first covered bonds backed by a cover pool of Norwegian residential mortgages on 26 September, pricing three and five year floating rate notes to raise Nkr3bn (Eu368m, Skr3.19bn).

The Swedish internet-based bank, which operates in Norway and Sweden, is a 100% subsidiary of financial services group Skandia.

It sold the first covered bonds off a programme backed by a cover pool of Swedish mortgages on 17 September), issuing Skr3.3bn.

In Norwegian kroner it sold Nkr2bn of five year paper at a level of three month Nibor plus 49bp, and Nkr1bn of three year paper at three month Nibor plus 30bp, via SEB, Nordea and DNB.

A banker at SEB said that the deal had been well received.

He said that the issuer had paid a premium of a couple of basis points over other Norwegian covered bonds because it is a new name.