Denmark’s Sydbank sold an inaugural fixed rate euro senior unsecured benchmark on Thursday, a Eu500m issue with a three year maturity that a lead banker noted was relatively rare in Nordic supply, while an official at the issuer said the deal was launched to refinance a February 2014 redemption.
The Danish government announced a new package of bank regulations today (Thursday), including details on the capital requirements for systemically important financial institutions (SIFIs).
Danske Bank achieved a participation rate of over 90% on a tender offer it launched on 18 September for a $1bn (Eu748m, Dkr5.58bn) 7.125% 25 year non-call five Tier 2 instrument, it announced yesterday (Wednesday).
Nykredit Realkredit drew Skr50bn of orders when it sold Skr10.3bn (Eu1.18bn, Dkr8.81bn) of one year SDOs backed by Swedish mortgages in its third such sale last Thursday (August 29). Meanwhile DLR Kredit rounded off the latest Danish auction season today (Thursday).
DLR Kredit will align its sales to coincide with those of its peers when the next Danish auction season begins in November, with the issuer having attracted weaker interest when finishing off the latest round of sales this week, according to an official at DLR Kredit.
Nordea Kredit and Nykredit Realkredit wrapped up adjustable rate mortgage (ARM) bond auctions today (Thursday) and BRFkredit is set to finish its sales tomorrow, with an official at BRFkredit saying that “no hiccups whatsoever” have affected the autumn auctions so far.
Nykredit will launch its August refinancing auctions next Thursday, with one year ARM bonds dominating after a smaller than expected take-up of longer interest reset periods. Meanwhile, Realkredit Danmark is launching a Cita product aimed at addressing concerns about refinancing risk.
Danish banks’ funding profiles are a weakness and the Swedish banking system shows a structural mismatch of assets and liabilities, Standard & Poor’s said in July in the context of a range of rating actions on banks and their debt in these jurisdictions.
Ane Arnth Jensen, managing director of the Association of Danish Mortgage Banks (Realkreditrådet), spoke to Nordic FIs & Covered about regulatory issues that could impact Denmark’s system.
Standard & Poor’s expects a shift in the Danish mortgage market towards longer term and CITA-linked loans, despite questions about their popularity in light of the costs associated with such mortgage products.