Nordics

Three covered bond issuers took advantage of a rise in yields, following what seemed a breakthrough in Brexit negotiations, to issue transactions that would not have been well received two weeks ago. Banca Popolare dell’Alto Adige’s debut and Sparkasse Hannover’s sub-benchmark deals delivered positive returns, while demand for a slightly negative-yielding benchmark from Sparebanken Sør Boligkreditt was boosted by its green credentials.

The World Bank appointed banks on Tuesday to lead its first 10 year dollar benchmark in almost two years to join a flurry of SSAs who have recently ventured into this rarely visited part of the curve in the currency. Meanwhile, Finnvera has mandated banks for its second syndicated trade of the year.

The branding may be on the way out, but there are plenty of reasons to be encouraged about the potential for real progress in the next phase of the Capital Markets Union.

SATS, the Norwegian owner and operator of fitness clubs across the Nordic region, has set a price range on its Oslo IPO that values it at over €450m at the top of the range.

Kommuninvest has added euros to its strategic funding markets for benchmark bonds alongside Swedish krona and dollars.

Sweden’s consideration of whether to issue a green bond has been careful and thorough, stretching over nearly three years and considering several objections. The Riksgälden (Swedish National Debt Office) is now determined to go ahead with a deal in 2020. Here, the Riksgälden answers GlobalCapital’s questions about its thinking.

The European Systemic Risk Board is concerned that covered bonds could be fuelling financial imbalances — a claim that some analysts find tenuous. They do, however, agree that house prices are overvalued, particularly in some Nordic countries where the ESRB has identified a risk of financial contagion.

Corporate, FIG and SSA issuers placed floating rate notes this week, pegged to Euribor, Sonia and Libor. With so many issuers coming to market, bankers are interested to see which other borrowers 'take advantage of the liquidity'.

Sweden has mandated SEB as structuring adviser on its debut green bond, to be issued in 2020. The announcement on Thursday morning for the first time puts a definite date on when Sweden will issue. The process of considering the idea has already taken nearly three years.

Sparebanken Sør Boligkreditt will become the fourth Norwegian bank to issue a green covered bond after mandating leads for a roadshow on Thursday. It follows the first green covered bond by Norway’s SR Boligkreditt and a vanilla deal from Møre Boligkreditt issued this week.

Sparebanken Sør Boligkreditt will become the fourth Norwegian bank to issue a green covered bond and has mandated leads for a roadshow following publication of its green and sustainability framework.

KommuneKredit’s senior funding and investor relations manager Lasse Vest has left the Danish agency for Danske Bank.