Norway

BN Boligkreditt has opened the books on its debut Eu1bn five year covered bond and by lunchtime had attracted some Eu600m of orders at guidance of the 15bp over mid-swaps area, with volatile equity markets providing an unhelpful backdrop.

DnB Nor brought the second week of the covered bond year to a successful close today, pricing its five year deal in the middle of the 11bp over mid-swaps area guidance and at a size of Eu2bn. But whether next week’s supply will match the Eu8bn plus of the past few days remains unclear.

The books have opened on DnB Nor Boligkreditt’s five year benchmark covered bond, and the deal’s swift progress has further demonstrated the divisions in the market, which is in particular benefiting established names.

DnB Nor Boligkreditt is the latest covered bond issuer to join the pipeline and could tap the market imminently, despite supply being as busy as anyone can remember and pricing expectations being constantly revised. The effects of Banco Espiríto Santo’s Eu1.25bn three year coming at a wider than expected 20bp over mid-swaps are still being felt around the market.

BN Boligkreditt is to launch its debut euro covered bond, backed by Norwegian residential mortgages, in the new year. The Norwegian issuer is keen to build a long-term presence in the covered bond market to diversify its funding base, but plans to adopt a measured approach.

DnB Nor’s Eu1.5bn three year covered bond proved a hit with investors yesterday (Wednesday), attracting Eu3.8bn of orders in three hours, enabling the leads to tighten pricing from the 3bp area guidance to 2bp over mid-swaps.

DnB Nor Boligkreditt’s second ever covered bond, a three year deal, sold out quickly this (Wednesday) morning, in stark contrast to its five year debut in June, which hit the market just as it was turning south.

DnB Nor Boligkreditt is expected to launch a benchmark sized euro denominated covered bond this week, its second, having mandated Barclays Capital, SG CIB and UniCredit as lead managers.

DnB Nor Boligkreditt debuted in the Swiss franc market yesterday (Wednesday), selling a Sfr500m (Eu250m) issue split equally into five and seven year tranches through Credit Suisse.

In the UniCredit* Nordic covered bond roundtable participants discussed the boom in euro issuance from the region, and what differences and similarities there are between issuers and markets.

Sparebank 1 Boligkreditt priced its debut covered bond this (Tuesday) morning, a Eu1.5bn three year transaction that has won plaudits for its unhurried execution.

Norway's Terra Boligkreditt sneaked into the market on Friday to sell its inaugural covered bond ahead of Sparebank 1’s debut in the euro market today (Monday), pricing a Sfr225m deal.