Sparebanken Vest found conditions challenging when executing a Eu500m five year covered bond on Tuesday and paid more than expected, according to an official at the bank, but he said the issuer moved early as it is not clear the market will improve in the coming weeks.

Sparebanken Vest Boligkreditt sold a Eu500m no-grow five year covered bond on Thursday of last week (9 January), having seen “no reason to wait” to tap the market early in the year given strong market conditions, an official at the issuer told Nordic FIs & Covered.

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.

Fitch affirmed the ratings of Norway’s Sparebanken on Tuesday, saying that their current ratings of A or A- reflect the sound asset quality and good capital and leverage ratios of the banks.