Norway

Hopes that benchmark covered bond issuance could restart next week have been reined in after reports that French president Nicolas Sarkozy threatened to pull out of the euro-zone contributed to renewed volatility today (Friday).

The Norwegian Covered Bond Council, which was established in January, aims to enhance Norwegian covered bonds and promote them to domestic and foreign investors, according to Norwegian market participants.

Norway’s KLP group is finalising a public sector covered bond programme for its KLP Kommunekreditt public sector lending business.

Austria’s Bank für Arbeit und Wirtschaft (Bawag) and Norway’s Sparebanken Vest Boligkreditt today (Wednesday) announced that they will go on covered bond roadshows in the week of 17 May, although because of market volatility the new issue market remains closed.

DnB Nor Boligkreditt yesterday (Monday) sold the biggest five year benchmark of the year, while a Eu1bn 10 year BNP Paribas Home Loan issue attracted yield-oriented demand in a well supported covered bond market.

Three issuers this (Monday) morning launched or tapped benchmark covered bonds in a market buoyed by an agreement over the weekend on terms of an emergency loans package for Greece. Meanwhile, Dexia Municipal Agency has mandated for a deal that could be launched tomorrow (Tuesday).

Compagnie de Financement Foncier priced a Eu1bn five year covered bond this (Thursday) morning, while DnB Nor Boligkreditt has announced a mandate for a deal that market participants expect to be launched next week.

Fitch has revised the outlook on the A long term issuer rating of SpareBank 1 Boligkreditt from stable to negative, but upgraded its support rating from 2 to 1.

SpareBank 1 Boligkreditt launched a Eu1.25bn seven year covered bond a day earlier than planned yesterday (Wednesday) after being encouraged by feedback sparked by the deal’s announcement on Tuesday, the issuer told The Cover.

Lloyds TSB has priced a Eu1.5bn five year Regulated Covered Bond inside HBOS’s secondary curve, whose sway over the final re-offer level market participants had been debating given that the two issuers are part of the same group. Meanwhile, SpareBank 1 Boligkreditt issued a Eu1.25bn seven year deal.

A high quality cover pool comprised of Norwegian residential mortgages was a strong selling point for a Eu600m two-and-a-half year Terra Boligkreditt covered bond, the issuer told The Cover after pricing the issue yesterday (Monday) afternoon.

Lloyds TSB has opened the books for an inaugural issue off its Regulated Covered Bond programme today (Tuesday). Meanwhile, SpareBank 1 Boligkreditt has announced plans to tap the market.