Nordics

Norway’s Ministry of Finance is considering a recommendation from the country’s central bank that would allow Norwegian issuers to repurchase early covered bonds submitted as part of a government swap arrangement and thereby better manage their refinancing needs.

Leeds Building Society is lining up to re-open the sterling covered bond market next week, while other inaugural deals are expected to lead a resumption of new benchmark issuance in euros.

Sampo Housing Loan Bank is preparing to resume issuing covered bonds for the first time since being acquired by Danske Bank in 2006 as part of a takeover of its parent, Sampo Bank, an official at Dankse told The Cover.

Concrete plans for new issue projects next week appeared thin on the ground this (Friday) morning, but this could be a misleading indicator of forthcoming supply. At least three issuers are on the road next week, Spanish banks are emerging from blackout periods, and bankers said that French issuers are likely to be encouraged by a successful Compagnie de Financement Foncier Eu1bn 10 year transaction sold yesterday.

Swedbank Mortgage priced its fourth euro benchmark covered bond of the year on Tuesday, a Eu1bn long three year deal that the issuer told The Cover was motivated in part by publication of robust third quarter figures.

Banca Popolare di Milano, Kutxa and Swedbank Mortgage accessed the benchmark covered bond market this (Tuesday) morning to offer investors a medley of new euro issues after a day of preparation yesterday that one syndicate banker said was necessitated by limited liquidity in the market.

Swedbank Mortgage and Banca Popolare di Milano are lining up new issues that will probably be executed tomorrow (Tuesday), after syndicate bankers said the market opened strongly today.

SpareBank 1 Boligkreditt sold a $1.5bn (Eu1.077bn) three year benchmark in the US market yesterday (Wednesday) and the issuer told The Cover that the transaction was part of a strategic move to diversify its investor base.

Intesa Sanpaolo has opened books on its first mortgage covered bond, backed by self-originated residential mortgage backed securities, with what a syndicate official described as an “eye-catching” level. Meanwhile, Nordea is preparing a roadshow to introduce Finnish covered bond plans.

Two inaugural euro covered bonds backed by residential mortgage backed securities were this (Monday) being flagged for possible launch this week.

The covered bond market is in good condition and generally open for issuance, syndicate bankers reported today (Monday), but with no new mandates publicly announced since last Thursday a deal from Italy’s Intesa Sanpaolo was this morning the most concrete new issue project in the pipeline for the week.

Standard & Poor’s on Friday affirmed at BBB the ratings of five rated members of Hypo Real Estate group following a transfer of assets to run-off entity FMS Wertmanagement. Fitch affirmed Deutsche Pfandbriefbank but cut those of Depfa Bank plc and subsidiaries Depfa ACS Bank and Hypo Public Finance Bank.