Svenska Handelsbanken printed the first bank capital issue of 2014 on Tuesday, a Eu1.5bn (Skr16bn) 10 year non-call five subordinated bond that was swamped with demand to pave the way for the tightest pricing of a Tier 2 issue since the collapse of Lehman Brothers, according to a lead syndicate banker.
Danske Bank priced a Sfr150m 12 year non-call seven Tier 2 issue on Monday in a follow-up to a Nordic-targeted “Trekroner” subordinated debt sale last week, and in line with stated plans to explore Tier 2 issuance in European currencies.
Danske Bank sold Dkr5.55bn (Eu744m, $1.01bn) equivalent of Tier 2 capital across five local Nordic currency transactions in fixed and floating rate format on Tuesday, which an official at the issuer said was an “impressive” size that reflected positively on the depth of its local markets.
Danske Bank is exploring investor interest in Tier 2 debt in the three Nordic currencies and depending on feedback could launch a deal, which would be its second Tier 2 issuance this year, after a September deal in euros.
Danske Bank achieved a participation rate of over 90% on a tender offer it launched on 18 September for a $1bn (Eu748m, Dkr5.58bn) 7.125% 25 year non-call five Tier 2 instrument, it announced yesterday (Wednesday).
Danske Bank sold Eu1bn (Dkr7.46bn) of Tier 2 notes on Tuesday, after last Wednesday having launched a tender offer for a Tier 2 instrument that had lost favourable equity treatment from Standard & Poor’s.
Danske Bank has launched a cash tender offer for a $1bn (Eu748m, Dkr5.58bn) Tier 2 instrument it issued a year ago that lost favourable equity treatment by Standard & Poor’s in July, with uncertainty over the tax treatment of new instruments preventing the issuer from offering an exchange.
Danske Bank is considering its options for dealing with a change in methodology by Standard & Poor’s that means certain features of Tier 2 subordinated debt issued in September no longer count toward the bank’s RAC ratio, it said on 17 July.
Swedbank took advantage of a buoyant subordinated debt market and strong demand for Nordic credits to sell its first Tier 2 transaction in four years yesterday (Wednesday), a Eu500m 10 year non-call five deal.
Sweden’s Nordea Bank sold a US$1bn 10 year bullet Tier 2 deal on Monday, benefitting from a decision to broaden the deal’s scope to include the US 144A private placement market rather than only targeting Reg S accounts.