Norway

Norwegian Air Shuttle, the Norwegian airline, has priced its heavily discounted Nkr3bn (€308m) rights issue receiving a high take-up from shareholders, despite safety concerns over some of its fleet and heavy shorting of the stock.

Kommunekredit, Kommunalbanken (KBN) and World Bank hit screens for dollar deals on Monday, as bankers said that this week offers a decent window for issuance in the US currency.

Taps in Oceanic currencies flowed freely this week as two supranationals raised funds in the Kangaroo and Kauri markets.

Sparebanken 1 Boligkreditt’s (Spabol) 10 year has the highest covered bond mark of all deals issued by any bank outside the eurozone this year on GC BondMarker. SEB issued the highest scoring Swedish deal and Royal Bank of Canada (RBC) issued the best ranking Canadian covered bond this year.

This week's scorecard looks at the progress Nordic agencies have made in their 2019 funding programmes halfway through the first quarter.

Sparebank 1 SMN is ready to become the first Norwegian issuer of senior unsecured debt that complies with the green bond principles. Other banks, after issuing green unsecured deals are expected to issue green covered bonds.

Sparebanken Vest Boligkreditt opened books on the first covered bond of the week on Wednesday and managed to issue its largest ever deal with no new issue concession.

Conditions for public sector dollar issuers held firm this week after an excellent start to the year, although deals were thinner on the ground thanks to a US Federal Open Market Committee meeting. Chinese New Year holidays next week will give the sector a much needed breather — after which three-years might move more into vogue than fives, said SSA bankers.

Rating: Aaa/AAA

The covered bond market looked well supported on Wednesday as Sparebank Soer Boligkreditt issued the most highly oversubscribed deal of the year, which was priced flat to its curve. With all new issues tightening bankers are hopeful that Italian and Greek supply could soon follow.

Kommunalbanken took advantage of being the sole SSA issuer in dollars on Tuesday as it was more than twice subscribed and tightened pricing on its first dollar benchmark of the year. Concerns over volatility from this week’s US Federal Open Market Committee meeting and non-farm payrolls kept some other issuers on the sidelines, said SSA bankers — although two are braving Wednesday’s market.

Shares in Norwegian Air Shuttle, the Norwegian budget airline, fell 25% on Tuesday after the company announced an Nkr3bn (€308m) rights offer to avoid breaking its financial covenants following widening losses and an abandoned takeover attempt by IAG.