BRFkredit sold a EUR750m seven year covered bond on Wednesday that bankers said was the most solid deal of the week, benefitting from a bounce in sentiment, after Stadshypotek sold a EUR1bn six year issue on Monday that was only just oversubscribed amid weaker conditions.
SR-Boligkredit sold a €750m (NOK6.97bn) long five year issue on Wednesday that bankers, citing a slim new issue premium, described as its best deal to date after a lacklustre result in January, with the new issue having been boosted by a comprehensive roadshow.
Nykredit sold its first benchmark, syndicated Swedish krona covered bond with a three year maturity on Tuesday, having previously issued shorter dated paper in the Swedish market, and attracted some SEK20bn of orders for a SEK5bn FRN.
Danske sold its longest benchmark senior unsecured bond on Wednesday, a Eu1bn seven year issue that attracted over Eu2.3bn of demand. It issuer also last week launched its first benchmark, syndicated Norwegian krone covered bond, as part of a planned Norwegian expansion.
Stadshypotek looks set to issue covered bonds backed by a dedicated Finnish residential mortgage cover pool under Swedish legislation, after Moody’s yesterday (Thursday) announced a provisional Aaa rating for such covered bonds, with issuance off a Danish pool also a possibility.
DNB Boligkreditt attracted Eu2.2bn of demand for a Eu1.5bn seven year covered bond on Tuesday, before fellow Norwegian issuer Eika Boligkreditt sold a twice oversubscribed Eu500m seven year on Wednesday, having moved forward its plans to capitalise on strong demand in the seven year part of the curve.
Norwegian covered bonds exposed to oil price-sensitive markets will be able to withstand the effects of persistent low prices thanks to sufficient levels of surplus OC, according to Moody’s, with the rating agency also noting that the relevant programmes should prove resilient to a consequent weakening of the Norwegian economy.
Sparebanken Sør Boligkreditt made its euro-denominated covered bond debut on Tuesday – joining the market to meet increased funding needs, according to the issuer’s CEO – and bankers said the Eu500m five year issue positioned the Norwegian issuer well next to its peers.
Nordea today (Friday) launched a consent solicitation in respect of covered bonds issued by Nordea Bank Finland, seeking approval for a new demerged entity, Nordea Hypoteksbank, to assume the role of issuer while the Finnish bank is converted into a branch of the Swedish parent.
Norway’s SpareBank 1 Boligkreditt sold a Eu1bn seven year covered bond on Wednesday that was described as “textbook” into a busy euro covered bond market where eight issues totalling Eu6bn were launched this week.