Norway

Terra Boligkreditt reopened the covered bond market with a Eu500m issue this (Friday) morning that bankers said bodes well for an expected surge in issuance over the coming weeks.

Moody’s assigned an A3 rating, on stable outlook, to Norway’s Sparebanken Sør yesterday (Thursday).

The first publicly announced covered bond mandate since the middle of July hit the screens today (Wednesday), with Norway’s Terra Boligkreditt announcing that it has hired banks to carry out investor meetings. And despite a lack of other public plans, syndicate bankers are eying next week for the resumption of new issue activity.

Moody’s yesterday (Monday) assigned a definitive rating of Aa3 to commercial mortgage-backed covered bonds issued by SpareBank 1 Næringskreditt.

Fitch yesterday (Thursday) rated Sparebanken Vest Boligkreditt A- on stable outlook, citing the strong integration and support it could receive from its owner Sparebanken Vest in the event of need.

SpareBank 1 Boligkreditt priced a Eu1bn five year mortgage-backed covered bond yesterday (Wednesday), confident that it could reach the benchmark size despite coming amid heavy supply, the issuer told The Cover.

New covered bonds launched by Danske Bank, Lloyds TSB and SpareBank 1 Boligkreditt met with modest demand today (Wednesday), although syndicate bankers highlighted high quality order books and sub-Eu1bn issue sizes in longer maturities as respectable achievements.

Five new Eu500m plus covered bonds were announced in the past 24 hours after yesterday (Monday) morning’s two, despite market conditions proving worse than last week, when 12 hit the market. The deals announced today (Tuesday) are set to take euro jumbo issuance this year past Eu100bn.

BNP Paribas priced the biggest benchmark covered bond since the middle of April yesterday (Wednesday) to wrap up the busiest day in the market since then, with Sparebanken Vest and Dexia Kommunalbank Deutschland also taking half a yard each out of the market.

Three issuers launched euro covered bonds this (Wednesday) morning ahead of a public holiday in many parts of Germany tomorrow, with market conditions said to be better than yesterday, although still weak. Meanwhile, the US market could see its first new covered bond supply since mid-April.

Norway’s Møre Boligkreditt is today (Thursday) selling a Nkr800m (Eu100.26m) seven year floating rate note, its second publicly launched covered bond. Moody’s has assigned the covered bonds a definitive Aaa rating, which the issuer told The Cover was important for reaching an international investor base.