DNB Boligkreditt priced its second tightest five year covered bond on Tuesday, a Eu1.5bn deal that came at 7bp over and gave the issuer a Eu500m headstart on its wholesale funding needs for next year.
New measures announced by the Norwegian Ministry of Finance for how banks calculate capital requirements for mortgage loans under the IRB approach are credit positive because they ensure retention of capital, Moody’s said on Monday.
Skandiabanken issued its first covered bonds backed by a cover pool of Norwegian residential mortgages on 26 September, pricing three and five year floating rate notes to raise Nkr3bn (Eu368m, Skr3.19bn).
Moody’s upgraded commercial mortgage backed covered bonds issued by SpareBank 1 Næringskreditt from Aa3 to Aa2 yesterday (Wednesday), citing a strengthening of liquidity and capital support for the issuer.
Skandiabanken has joined the ranks of Swedish covered bond issuers, having last week inaugurated a new covered bond programme with a Skr3.3bn (Eu381m) dual tranche FRN issue backed by a cover pool of Swedish residential mortgages.
Norway’s Sparebanken Vest Boligkreditt priced its first benchmark euro covered bond in more than one-and-a-half years yesterday (Wednesday), a Eu500m no-grow five year deal that an official at the issuer said went “smoothly and swiftly” and bodes well for an envisaged increase in euro issuance.
Norway’s SpareBank 1 alliance has strengthened liquidity and capital support of its commercial mortgage covered bond issuer, SpareBank 1 Næringskreditt, in a move recognised by Moody’s and which the issuer hopes could yield pricing benefits.
Norway’s DNB kicked off the Nordic reporting season today (Thursday), posting second quarter pre-tax profits that beat consensus expectations as the bank benefitted from raising lending rates and improved deposit margins.
Gjensidige Bank has become more strategically important to its parent, Norwegian insurance group Gjensidige, according to Standard & Poor’s, which upgraded the bank, subsidiary Gjensidige Bank Boligkreditt, and the latter’s covered bonds on Friday.
Norway’s SpareBank 1 Boligkreditt was one of four issuers to launch benchmark euro covered bonds this week despite market conditions remaining tricky after the recent turn in sentiment, while Aktia Bank has embarked upon a roadshow ahead of a debut in its new guise.