Länsförsäkringar Bank sold a SEK1bn (€108m) dual tranche five year senior unsecured bond on Wednesday, sensing an opportunity to tap into strong demand in an undersupplied market, according to the issuer’s head of long term funding, and is considering a debut public euro issue.

Länsförsäkringar Bank (LF Bank) sold its inaugural Additional Tier 1 issue on Tuesday, a Skr1.2bn (Eu128m) perpetual non-call five issue that achieved tight pricing relative to international markets and also LF’s Swedish peers in the domestic market. Meanwhile, SBAB issued a Skr1bn 10 year non-call five Tier 2.

Moody’s downgraded Länsförsäkringar Bank’s debt and deposit ratings from A2 to A3, on stable outlook, yesterday (Wednesday), citing relatively light capitalisation at the bank level, high growth rates in recent years, and market funding reliance.

The Covered Bond Report’s Neil Day spoke with Martin Rydin, vice executive president, LF Hypotek, and head of treasury, LF Bank.