Jyske returned to the senior unsecured market for possibly the last time on 23 May after in March selling its biggest capital trade, a four times covered Eu300m 12 year non-call seven Tier 2 that investors welcomed as a rare opportunity to buy a yieldy euro trade from the Dane.
A debut, dual tranche DKK1.5bn equivalent AT1 for Jyske Bank on 7 September was more than twice oversubscribed, and comprised the first benchmark Swedish krona AT1 from a non-domestic name, with a Jyske official deeming the result a testament to years of work in the Swedish market.
Bids were strong throughout the latest Danish refinancing auctions, with non-domestic investors in particular finding value, as Nykredit hailed improving recognition of its euro FRNs and Realkredit Danmark priced a Skr4.35bn issue with the slimmest pick-up versus domestic paper in recent years.
The opening sales of the latest Danish refinancing auctions yesterday and today achieved encouraging bid-to-covers, with market participants attributing the demand to the spreads being attractive against a range of alternatives, and FRNs sold next week are expected to be well received.
New Nykredit Realkredit “senior resolution notes” (SRNs) are positive for holders of its covered bonds, Moody’s said yesterday (Thursday), after S&P revised its outlook on the issuer from negative to stable and the Danish issuer reopened the euro senior market with its second such deal.
Nykredit launched what has been touted as the first Tier 3 instrument in the new bail-in era on 6 June, a Eu500m three year “senior resolution note” that sits between its senior unsecured debt and junior loss-absorbing debt and whose reception was said to augur well for similar forthcoming issuance.
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.
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.
Nykredit is planning to cut ARMs auctions from four times to twice a year as part of an initiative aimed at offering fewer but larger lines of covered bonds to meet LCR Level 1B criteria that have affected pricing in the Danish market, where the latest auction season ended solidly.
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.