Danske and DNB released fourth quarter results today (Thursday) that reflect “various stages of recovery” while reporting by Handelsbanken and SEB yesterday confirm the strength of the Swedish banking sector, said a KeplerCheuvreux analyst.
Tight spreads tempted SEB to bring forward Q1 2014 issuance plans and launch a Eu1bn seven year covered bond benchmark on Monday, the bank’s head of treasury management told Nordic FIs & Covered.
SEB made an opportunistic foray into the sterling market on Tuesday to launch a £300m (Skr3.08bn, Eu356m) seven year senior unsecured deal that is the longest dated Swedish sterling issue this year.
Skandinaviska Enskilda Banken (SEB) sold a Eu750m (Skr6.51bn) five-and-a-half year senior unsecured bond on Tuesday, taking advantage of an improvement in market conditions to launch an opportunistic trade, an official at the Swedish bank told Nordic FIs & Covered.
Danske Bank’s second quarter results announced today (Thursday) beat expectations but the bank lowered its guidance for the full year. The Danish lender reported after a slew of results from other major Nordic banks in July.
SEB added another string to its bow by making its US dollar covered bond debut on Tuesday, pricing a $1.5bn five year deal on the back of strong demand and only 1bp wide of where Stadshypotek tapped the market last week.
Mats Anderson, Cheuvreux bank equity analyst, reviews the first round of Nordic Q1 results.
DNB today (Thursday) became the first European issuer to sell a US targeted benchmark covered bond this year, after SEB yesterday placed an inaugural, $1.25bn five year senior unsecured deal as dollars offered high quality Yankee names better terms than euros.
SEB launched the first Swedish euro benchmark covered bond in nearly a year on Monday after feeling that it was “due time” to return to what is its most strategic foreign market, said an official at the issuer, with a more acceptable cross-currency basis swap also spurring the deal.
SpareBank 1 SR Bank and SEB took advantage of strong market conditions and compressed spreads to tap the euro senior unsecured market this week, while Nordea Bank made the most of a good issuance opportunity in sterling.