Handelsbanken makes use of senior supply scarcity

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By David Freitas
08 Apr 2020

Svenska Handelsbanken was the only financial institution to issue senior debt in euros this week. The issuance came at a time Swedish banks have been granted an extension of two years to comply with regulatory targets for MREL debt, which might make a short-term dent in issuance.

The Swedish lender attracted an €8.25bn book for the five year preferred senior bond and sold €1.25bn of the securities at 135bp over mid-swaps.

Bookrunners Goldman Sachs, Nomura, Svenska Handelsbanken and UBS were able to tighten pricing 40bp from initial guidance of 175bp.

Keith ...

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