Nordea Markets

Oatly, the Swedish oat milk producer, is taking on debt to finance building two new factories with its first ever syndicated loan, and naturally chose a sustainability-linked instrument, its chief financial officer said. Those hoping for an IPO will have to wait a while longer.

Klaveness Combination Carriers, a Norwegian shipping company, has signed what it claims to be the first sustainability-linked bank loan for the sector in Norway, as the outlook remains gloomy for global shipping.

Oatly, the Swedish company that makes oat milk, has signed a Skr1.925bn (€184m) club loan, on which the pricing can be adjusted if it hits sustainability targets.

Europe’s investment grade corporate bond market acquired a more cheerful tone on Tuesday, with new issues well oversubscribed, despite quickly shifting sentiment.

The International Development Association (IDA) has tapped the Swedish krona market for the first time as it prepares to increase its funding programme for the 2020-21 fiscal year.

Sovereign, supranational and agency bond issuers are mobilising their resources to support the fight against Covid-19. The below table details the bonds they have issued, specifically in response to the coronavirus pandemic.

Market participants expect European banks to take a large chunk of funding through the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTRO III) programme, hitting covered bond supply levels. But issuance in other asset classes should remain unaffected as banks follow through with their funding plans.

Nordea Bank took advantage of very attractive conditions in the dollar market this week to price a new senior deal at a spread that was well below the fair value implied by secondary trading levels.

Estonia returned to the capital markets on Wednesday after 18 years away, introducing itself to a new set of investors as an SSA borrower.

Banks are taking a greater share of issuance in the bond markets in the middle of the second quarter, with a spread rally opening the way to deals in all currencies and across the capital structure.

Nordea has made extensive use of Nordic currency covered bond markets through the coronavirus crisis and, as spreads have stabilised, has selectively issued senior preferred deals across a broad range of other FX. The bank says it has plenty of time to meet its regulatory funding needs and has no imminent plans to issue subordinated debt given the recent relaxation of capital requirements.

Alberta made its first foray into the Norwegian kroner market on Thursday — the same day that S&P placed the province’s credit outlook on negative.