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.
KLP Boligkreditt issued its first covered bond on 5 September, a Nkr500m (Eu60m) five year floating rate note, and an official at KLP Banken said that a next covered bond issue is already being worked on, with Nkr5bn expected by the end of 2015.
Norway’s KLP Boligkreditt is close to making its covered bond debut, with a domestic issue targeted for launch this month, according to an official at the issuer, after Moody’s yesterday (Wednesday) assigned a provisional rating to the covered bonds.
Nordea Eiendomskreditt made its sterling covered bond debut today (Thursday) with a £500m (Eu627m, Nkr5.11bn) three year FRN that was nearly twice subscribed and said to be the tightest deal in the currency so far, also coming inside theoretical euro new issue levels.
Changes to capital requirements announced by the Norwegian ministry of finance that are in line with the latest EU Capital Requirements Directive (CRD) are credit positive for the country’s banks, Moody’s said today (Thursday), in that they will strengthen the financial institutions’ capital buffers.
Norway’s KLP Banken is eyeing a first mortgage-backed covered bond issue out of new entity KLP Boligkreditt in the coming months, after having received approval for the specialist institution from the Norwegian FSA (Finanstilsynet) last month.
Norwegian chief financial officers proved more bearish than their peers in their responses to a variety of questions posed by Moody’s in a survey of 39 Nordic CFOs, with an increase in banking regulation highlighted as a key factor potentially constraining their institutions.
Norwegian banks have strengthened their credit underwriting standards, according to a survey by the Norwegian Financial Supervisory Authority (Finanstilsynet), Moody’s noted yesterday (Wednesday), saying this is leading to an overall improvement in the credit quality of covered bond collateral.
Moody’s considers a framework for systemically important financial institutions (SIFIs) proposed by Norway’s Financial Supervisory Authority last week to be credit positive for eight financial institutions designated SIFIs.
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.