Nordics

Swedbank Mortgage is planning to launch a seven year benchmark covered bond next week, with market participants suggesting that the deal could come at a wider level than was expected earlier this week.

Fitch has revised the outlook on the A long term issuer rating of SpareBank 1 Boligkreditt from stable to negative, but upgraded its support rating from 2 to 1.

SpareBank 1 Boligkreditt launched a Eu1.25bn seven year covered bond a day earlier than planned yesterday (Wednesday) after being encouraged by feedback sparked by the deal’s announcement on Tuesday, the issuer told The Cover.

Lloyds TSB has priced a Eu1.5bn five year Regulated Covered Bond inside HBOS’s secondary curve, whose sway over the final re-offer level market participants had been debating given that the two issuers are part of the same group. Meanwhile, SpareBank 1 Boligkreditt issued a Eu1.25bn seven year deal.

A high quality cover pool comprised of Norwegian residential mortgages was a strong selling point for a Eu600m two-and-a-half year Terra Boligkreditt covered bond, the issuer told The Cover after pricing the issue yesterday (Monday) afternoon.

Lloyds TSB has opened the books for an inaugural issue off its Regulated Covered Bond programme today (Tuesday). Meanwhile, SpareBank 1 Boligkreditt has announced plans to tap the market.

Terra Boligkreditt will today (Monday) price a Eu600m two-and-a-half year covered bond that was increased from Eu500m on the back of strong demand, kick-starting what bankers expect to be a busy week for issuance.

SNS Bank opted for a Eu1bn size for a seven year covered bond launched yesterday (Wednesday) to ensure a good performance, said a syndicate official at one of its leads, although the size and quality of the order book would have allowed for a larger deal. Meanwhile, Aktia Real Estate Mortgage Bank hit the tight end of guidance but nevertheless paid a premium for the issue’s Eu500m size.

SNS Bank and Aktia Real Estate Mortgage Bank have been in the market today (Wednesday), building books for new covered bond issues after the pricing of benchmarks for Dexia Kommunalbank Deutschland and Erste Bank yesterday (Tuesday).

SNS Bank has mandated lead managers for a new covered bond that is expected this week, and several other issuers are said to be candidates for issuance in the coming days.

Standard & Poor’s has affirmed the AAA ratings of a further four covered bond programmes under its new rating methodology. The programmes are those of DekaBank Deutsche Girozentrale, NRW.Bank, DnB Nor Boligkreditt, and BNP Paribas Public Sector Société de Crédit Foncier.

Terra Boligkreditt has joined the list of issuers waiting to launch euro-denominated covered bonds, having announced a mandate for a European roadshow for next week.