Nordics

Sparebank 1 Boligkreddit convinced over 110 accounts to participate in the first publically syndicated seven year covered bond in almost six months.

Sparebank 1 Boligkreditt priced a €1.25bn seven year trade on Tuesday at the tight end of guidance, taking year to date Norwegian supply to over €4bn.

As eurozone issuers slip into blackout, Australian, Nordic and Canadian names have taken over primary market supply. Westpac is planning trades in euros and Australian dollars, while Sparebank 1 Boligkreditt began taking indications of interest on a seven year trade this Monday morning.

Terra Boligkreditt successfully raised €500m of five year funding on Wednesday morning, nearly five months after it first mandated for a deal. German and Nordic investors looked past the bond’s Aa2 rating from Moody’s, allowing the issuer to price inside guidance on the back of an oversubscribed book.

Commonwealth Bank of Australia looks set to become the first bank in the country to issue a covered bond in the home currency. The deal is also set to become the largest FIG bond ever sold in Australia.

Covered bond supply was restricted to an impressive €850m tap from BPCE on Thursday, taking the number of long dated French transactions already this year to six.

A series of mandates from outside the eurozone hit screens on Friday. Australian, New Zealand and Norwegian issuers could all launch in the next two weeks, while three Turkish banks have hired UniCredit Menkul Degerler for trades in 2012.

ABN Amro and Credit Suisse maintained primary market momentum on Wednesday, adding another €2.25bn of supply. ABN Amro paid above initial price thoughts to ensure smooth execution of its 10 year, while Credit Suisse was able to price its five year inside UBS’s offering last week — making it the tightest five year euro print of the year.

Four covered bond issuers collectively raised over €5bn of new funding on Tuesday across two currencies and three tenors. Total issuance this week exceeds €8bn equivalent and on Wednesday a further two are lining up with euro benchmarks. This suggests borrowers will have raised at least €25bn equivalent this year by the close of play on Wednesday.

Having aimed for a maximum €2bn deal, Nordea Bank Finland ended up printing an even larger trade after its July 2017 drew €3bn of demand. The €2.25bn deal, increased off the back of ECB Covered Bond Purchase Programme participation, is the largest Nordic covered bond ever.

The covered bond primary market continues to enjoy good momentum, with as many as four issuers collectively raising the equivalent of around €5bn in the four to 12 year area across two currencies.

Australia and New Zealand Banking Group, Aareal bank and Compagnie de Financement Foncier successfully raised a collective €2.5bn on Monday, opening the way for Deutsche Pfandbriefbank, Nordea and Credit Mutuel-CIC - which are expected to launch and price deals on Tuesday.