Danske Bank opened the market for contingent capital for Nordic banks with a bang yesterday (Wednesday), drawing some Eu13bn of demand for its much anticipated AT1 transaction and achieving the lowest coupon to date for the new type of hybrid bank capital.

Danske Bank could soon emerge with the first Nordic CoCo transaction, after having yesterday (Wednesday) announced that it will next week meet with investors in connection with a potential euro Additional Tier 1.

Svenska Handelsbanken printed the first bank capital issue of 2014 on Tuesday, a Eu1.5bn (Skr16bn) 10 year non-call five subordinated bond that was swamped with demand to pave the way for the tightest pricing of a Tier 2 issue since the collapse of Lehman Brothers, according to a lead syndicate banker.