Nordics

With increased activity in the euro investment grade and US high yield markets, bankers feel confident the European high yield pipeline should start making real progress, despite this week’s activity being restricted to a single roadshow.

The Euromoney Smaller European Companies Index Series currently comprises 1350 companies across 16 European countries.

Akelius Residential Property, the Swedish property group, was the only borrower roadshowing on Tuesday for a speculative grade bond in Europe, but bankers said investor feedback was positive.

SR-Boligkreditt has mandated leads for a series of investor meetings with a view to issuing its first deal.

Covered bonds proved their worth this week as, despite difficult market conditions, 10 borrowers were able to collectively raise more than €8bn at levels that looked attractive compared to senior unsecured financials.

Eager for winter, bankers headed north this week in search of ice and snow — along with a smattering of heavily voweled words, high alcohol content beverages and all things putrefied.

Lindorff, the Norwegian debt collection company, priced a €230m tap of its floating and fixed rate bonds on Thursday, reopening the European high yield market after the summer break in encouraging style.

Ontario Teachers' Pension Plan is selling a Dkr2.5bn (€335m) block of shares in ISS, the Danish cleaning and facility services company, on Wednesday night, in the first accelerated bookbuild of European shares so far this week.

The Swedish central bank (Riksbank) met on Wednesday amid speculation that it would announce an extension of its sovereign bond purchase programme to Swedish covered bonds, say analysts at Société Générale.

A eurozone agency is set to brave a dollar market that suffered volatility last week. And despite improved conditions, the issuer opted for a conservative maturity.

Akelius Residential Property, the Swedish property group, will begin a roadshow on Monday, September 7, for its first high yield bond in euros.

Sparebank 1 Boligkreditt adopted a cautious strategy when pricing its new seven year bond on Friday. The borrower offered a defensive high single digit new issue premium which bankers say has led to a repricing of its curve. Rival bankers said could have an affect on the Norwegian supply which is building in the pipeline. However, bankers on the deal said that the impact was minimal and that pricing was in line with other recent issues.