Norway

Fédération des caisses Desjardins du Québec (CCDJ), Compagnie de Financement Foncier (CFF) and Sparebanken Vest Boligkreditt (Svegno) were set to issue covered bonds with zero new issue premiums on Thursday. But after a surprisingly busy week, the market is now "running out of steam" with order books were much slower to build and subscription ratios far lower than transactions issued earlier this week.

UniCredit Bank Austria (Baca) was set to issue its fastest growing, most subscribed covered bond ever on Tuesday and Sparebank 1 Boligkreditt was posed to bring ts most subscribed deal with its most granular order book ever. Both covered bonds were priced flat or slightly inside fair value and illustrated that market conditions are at the best they've been this year.

Nordic Semiconductor, the Norwegian maker of semiconductors, has completed an Nkr1.1bn ($125m) growth capital raising to fund M&A opportunities and an acceleration of its growth strategy.

DNB Boligkreditt did not waste any time waiting to tap its covered bond first issued last week, raising a further Skr500m on Thursday in order to capitalise on the attractiveness of the Swedish krona compared with other currencies.

A trio of European SSAs raised a combined $6bn with five year dollar benchmarks this week. Kommunalbanken, the European Stability Mechanism and Nordic Investment Bank all hit a “very deep pocket” of demand in the tenor.

The European Stability Mechanism hit dollar the market on Wednesday with a five year benchmark — its fourth ever in the currency. Two Nordic issuers are set to follow suit on Thursday.

International Finance Corp sold the first Kauri bond in more than two months on Thursday, while in the Kangaroo market a pair of European agencies tapped a pocket of demand further down the curve.

Danish banks say they could replace non-preferred senior debt with preferred senior bonds in the second half of 2020, after Denmark’s national supervisor relaxed minimum requirements for own funds and eligible liabilities (MREL).

Kommunalbanken has raised its borrowing requirement for the year back to its initial target as a result of a strong performance in the Norwegian Krone over the summer.

Subordinated bond issuance could decline dramatically among Nordic banks following implementation the EU’s new bank recovery and resolution directive (BRRD 2), Fitch said this week.

This week's scorecard looks at the progress Nordic agencies have made in their 2020 funding programmes in late July.

Smaller loan loss provisions and high capital ratios have helped Nordic lenders to kick off European bank earnings season in a positive fashion. But analysts are cautious about drawing any conclusions for the rest of the sector.