Nordics

Norway’s two benchmark covered bond issuers, DnB Nor Boligkreditt and Sparebank 1 Boligkreditt, were on tour in Germany last week doing their best to attract investors’ attention, only to go on to stress their low profile in the market. One of the central messages of the presentations and the dual roadshow, hosted by UniCredit, was to highlight the exclusivity and the high quality of Norwegian jumbos.

Norway’s Storebrand executed its first covered bond issue in its domestic krone market on Friday, selling a Nkr2bn two tranche issue through DnB Nor Markets. The issuer has recently been on the road ahead of its non-jumbo euro debut.

Swedbank Mortgage is planning to launch its inaugural euro jumbo covered bond after a roadshow early next month. A funding official in Stockholm told The Cover that the issuer is likely to launch two benchmarks per year.

The disarray in the primary market this week has not deterred issuers old and new from pushing on with their covered bond plans. DnB Nor has picked leads for a new benchmark and Banco BPI has announced the arrangers of its programme and scheduled a roadshow.

Skandinaviska Enskilda Banken has avoided being knocked off course by adverse headlines and has priced a new Eu1bn five year benchmark covered bond at 17bp over mid-swaps this morning.

Sweden’s SEB this (Monday) morning opened the books on its new five year euro benchmark, with Caisse de Refinancement de l’Habitat (CRH) happy to hold fire on its deal while it waits for SEB to complete its new issue.

Nordea Hypotek priced its debut Swiss franc covered bond yesterday (Thursday), a Sfr200m deal via BNP Paribas and Credit Suisse to continue the revival of covered bonds in the Swiss market.

Terra Boligkreditt priced its first euro transaction yesterday (Thursday), its public non-jumbo deal adding a new dimension to the reopened covered bond market that was being cited as a reasonable option for even larger issuers.

Moody’s cut Alliance & Leicester’s long term credit rating from Aa3 to A1 yesterday (Wednesday), just days after the UK bank launched and retained the first issue from its covered bond programme. Meanwhile, Düsseldorfer Hypothekenbank has laid out its position in light of Fitch’s rating action last Friday.

Norway’s Terra Boligkreditt is launching its first covered bond in euros, adding yet more Norwegian supply to the market. Sweden’s SEB has mandated banks for a new issue, but is expected to hold off until next week.

Iceland’s new covered bond legislation, which came into force last month and was made available in an unofficial English translation by the Icelandic Financial Services Association yesterday (Tuesday), makes provision for four different types of collateral, includes no special bank provision, and does not yet give a minimum overcollateralisation level.

Nordea Hypotek priced its Eu1.5bn three year new issue yesterday (Tuesday) afternoon, with the leads declaring that the issuer could find encouragement in where it had priced against other recent mortgage backed deals.