Institutional buyers drive Nordea’s AT1 to make it tightest ever

Nordea HQ 230x150
By Nathan Collins
18 Sep 2014

Institutional investors piled into Nordea’s debut additional tier one issue this week, taking the lion’s share of the order book. The bank’s high capital ratios, distance to trigger and solid reputation drew in a multiple times oversubscription, despite the leads bringing in pricing to the tightest level seen yet on an AT1 deal.

“The pricing here is all about the credit quality,” said a FIG syndicate head at one of the leads. “Nordea is predominantly domiciled in strong Nordic countries. There was some focus on the balance sheet in Russia. But that’s a very small part of the bank’s balance sheet.”

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