Nordics

Demand for Nordea Hypotek’s three year new issue had reached Eu1.5bn by midday today (Thursday) after Barclays Capital, Natixis, Nordea and UniCredit opened books with guidance of the 2bp over mid-swaps area this morning. But the level of demand and the price that Nordea paid has led some market participants to ask why the issuer is visiting the euro market.

DnB Nor’s Eu1.5bn three year covered bond proved a hit with investors yesterday (Wednesday), attracting Eu3.8bn of orders in three hours, enabling the leads to tighten pricing from the 3bp area guidance to 2bp over mid-swaps.

DnB Nor Boligkreditt’s second ever covered bond, a three year deal, sold out quickly this (Wednesday) morning, in stark contrast to its five year debut in June, which hit the market just as it was turning south.

DnB Nor Boligkreditt is expected to launch a benchmark sized euro denominated covered bond this week, its second, having mandated Barclays Capital, SG CIB and UniCredit as lead managers.

Royal Bank of Canada (RBC) priced its debut Eu2bn five year covered bond at 10bp over mid-swaps this (Tuesday) morning, at the tight end of the 11bp over mid-swaps area guidance.

DnB Nor Boligkreditt debuted in the Swiss franc market yesterday (Wednesday), selling a Sfr500m (Eu250m) issue split equally into five and seven year tranches through Credit Suisse.

SEB is set to swim against the tide of domestic opinion with the launch of its inaugural euro denominated covered bond in mid-November. Other Swedish issuers have favoured the strong domestic market over the new pricing levels in euros, but SEB is expecting euro spreads to tighten between now and mid-November.

Swedish bank SEB is to issue its debut euro covered bond.

Nykredit today (Thursday) announced that it will begin issuing new Danish covered bonds, Særligt Dækkede Obligationer (SDOs), from the end of December to finance the mortgage lending of Nykredit and subsidiary Totalkredit.

Thomas Ahman, head of funding and liquidity at Stadshypotek in Stockholm, stressed today (Wednesday) that the issuer is in no hurry to tap the euro market and has stepped up its activity domestically.

In the UniCredit* Nordic covered bond roundtable participants discussed the boom in euro issuance from the region, and what differences and similarities there are between issuers and markets.

Sparebank 1 Boligkreditt priced its debut covered bond this (Tuesday) morning, a Eu1.5bn three year transaction that has won plaudits for its unhurried execution.