Nordics

DnB Nor Boligkreditt will soon be joining the throng of international issuers touting registered covered bonds to German investors. However, the Norwegian issuer is already enjoying an embarrassment of riches in the private placement market after selling its Eu2bn five year benchmark in mid-January.

Danske Bank is holding off from launching its debut euro benchmark in light of the difficult market conditions and has instead raised Eu1.1bn equivalent in the domestic Danish krone market at tighter funding levels than are available in euros.

BN Boligkreditt bowed to the inevitable late yesterday (Monday) and took the decision to postpone its first covered bond, a planned Eu1bn five year issue with guidance of the 15bp area over mid-swaps, after the covered bond market was hit by the shockwaves set off by yesterday’s sell-off in equities.

Like other issuers to have tapped the covered bond market so far this year, DnB Nor paid up to access the market last week, but Thor Tellefsen, senior vice president of investor relations and long term funding at DnB Nor, told The Cover today that the price was worth paying.

BN Boligkreditt has opened the books on its debut Eu1bn five year covered bond and by lunchtime had attracted some Eu600m of orders at guidance of the 15bp over mid-swaps area, with volatile equity markets providing an unhelpful backdrop.

DnB Nor brought the second week of the covered bond year to a successful close today, pricing its five year deal in the middle of the 11bp over mid-swaps area guidance and at a size of Eu2bn. But whether next week’s supply will match the Eu8bn plus of the past few days remains unclear.

The books have opened on DnB Nor Boligkreditt’s five year benchmark covered bond, and the deal’s swift progress has further demonstrated the divisions in the market, which is in particular benefiting established names.

DnB Nor Boligkreditt is the latest covered bond issuer to join the pipeline and could tap the market imminently, despite supply being as busy as anyone can remember and pricing expectations being constantly revised. The effects of Banco Espiríto Santo’s Eu1.25bn three year coming at a wider than expected 20bp over mid-swaps are still being felt around the market.

Skandinaviska Enskilda Banken AB (SEB) has priced its inaugural euro jumbo covered bond at 3bp over mid-swaps, at the tight end of the 4bp guidance. A final size of Eu1.5bn was decided on the three year deal after the bond attracted Eu4bn of orders.

Skandinaviska Enskilda Banken AB (SEB) has opened the books on its first euro covered bond, a three year jumbo with pricing set at 3bp over mid-swaps, the tight end of the 4bp guidance. The deal proved extremely popular with investors, gathering well in excess of Eu4bn of orders by midday.

Danske Bank has mandated BNP Paribas, Danske and HSBC to jointly arrange its Eu15bn covered bond programme and lead manage its inaugural euro benchmark. The programme promises to be the first under which covered bonds will be backed by residential mortgages from a variety of jurisdictions.

Moody’s has assigned a triple-A rating to the covered bonds to be issued from Nykredit Realkredit’s covered bond programme. Most of the bonds are secured on residential and commercial properties in Denmark, Sweden and Norway.