Sweden

This week's scorecard looks at the progress Nordic agencies have made in their 2020 funding programmes in mid-September.

Sweden's financial supervisor has extended its application of a risk weight floor on domestic mortgages, a measure that will help to protect senior debt by forcing banks to run with higher capital positions.

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.

Sweden’s long gestating green bond debut came to fruition this week as the sovereign scooped Skr20bn ($2.3bn) at a discount to its conventional curve.

Following a series of investor calls, Sweden has announced the tenor of its debut green bond, which is expected to be issued early next week through syndication.

DNB issued a Swedish krona covered bond on Thursday in a size large enough to qualify for the best treatment under the liquidity coverage ratio (LCR) and at a more competitive funding level than was available elsewhere. The deal was issued amid renewed hope that Nordic issuers will stay active in euro covered bonds this year.

DNB successfully issued a Swedish krona covered bond on Thursday in a size large enough to qualify for the best treatment under the liquidity coverage ratio (LCR) and at a more competitive funding level than was available elsewhere. The deal emerges in the wake of a report from Moody’s which highlighted the strength of the Swedish covered bond market.

Scope for Nordic covered bond issuance in euros is moderately positive, even in Sweden where some issuers could yet make a strategic return to euros despite the higher cost. Danes and Norwegians may also make an appearance in euros, but Finnish supply hopes are considered more limited.

Sweden began a series of calls with investors on Wednesday as it prepares to issue its highly anticipated inaugural green bond through syndication later this month.

Rating: Aa1/AA+

Kommuninvest is launching a pilot programme of sustainability loans. If there is enough demand, these will be funded through the institution's first social bond.

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).