DNB Boligkreditt attracted Eu2bn of orders to a Eu1.5bn 10 year covered bond today (Tuesday) that is the largest euro benchmark in the maturity since 2014 and comes after a slew of long-dated supply.
A DNB €1.5bn five year covered bond attracted over €2bn of demand yesterday (Thursday) as eight euro benchmarks totalling €8.5bn hit the market this week, with the asset class proving resilient amid tough conditions, although a SR-Boligkreditt deal was seen as a struggle.
Norway’s DNB Boligkreditt launched a Eu1.25bn (Nkr11.5bn) five year covered bond on Tuesday and market participants noted that its Eu1.8bn book represented greater oversubscription than levels achieved by CBPP3-eligible deals launched on the same day.
Skandinaviska Enskilda Banken (SEB) kicked off Swedish banks’ Q2 results announcements on Tuesday with pre-tax profits of Skr5.3bn (Eu570m) that were 14% ahead of consensus expectations, with strong commission revenues offsetting a fall in net interest income.
DNB Boligkreditt attracted strong US interest with a $1.25bn (Eu1.12bn, Nkr9.44bn) five year benchmark covered bond on Wednesday, and yesterday (Thursday) achieved tight pricing with a Skr4bn (Nkr3.61bn, Eu430m) subordinated issue that a banker said he believes to be the largest ever Tier 2 in the krona market.
Sparebanken Vest Boligkreditt on Wednesday sold the first Norwegian euro benchmark covered bond of the year, a Eu500m seven year that achieved tighter pricing than some market participants had expected, and an official at the Norwegian issuer said it may become a more frequent visitor to euros.
DNB Bolgikreditt made its sterling covered bond debut on Monday with a £250m (Nkr2.90bn, Eu336m) five year floating rate, and an official at the issuer said the maturity, format and currency suited its needs.
DNB on Wednesday became the first commercial bank from the Nordic region to sell a green bond, issuing a Nkr1bn (Eu115m) five year deal whose proceeds are earmarked for financing renewable energy projects.
DNB Boligkreditt sold a Eu500m (Nkr4.23bn) seven year floating rate covered bond last Friday (7 November), building on reverse enquiries to open a new FRN maturity after having tapped a five year through 2014.
DNB Boligkreditt priced a Eu1.25bn (Nkr10.2bn) five year covered bond at 3bp through mid-swaps on Monday, making for a favourable if modest return for the Norwegian issuer after an absence of 10 months, during which it has progressively tapped an FRN up to Eu850m and raised a record amount domestically.