Sweden

Cities and municipalities are some of the most suitable issuers for the green or socially responsible bond market, but the cost and effort could be too much to for some. Jonathan Breen reports.

A European sovereign will sell a short dated dollar benchmark on Tuesday, but a weak market backdrop and tight swap spreads are likely to hold other issuers back from bringing deals in the currency.

SCBC returned to the covered bond market on Monday, following Swedbank, which priced a larger deal at a tighter spread in the same tenor last week. The difference in fortunes is simply a function of the market conditions, which were not good last week, but have deteriorated further. Separately, DVB bank is set to price a €250m shipping loan Pfandbrief.

Swedbank and SR Boligkreditt defied tricky market conditions this week to respectively raise €1.25bn and €500m in five year covered bonds.

Swedbank defied a tricky market on Tuesday to raise €1.25bn in five year covered bonds, in a deal described by a rival banker as “outstanding”.

The Swedish bank has mandated leads for a five year benchmark that is expected to be launched on Tuesday. This will be its second deal in euros this year and its fourth overall.

Swedish group Akelius Residential Property on Wednesday sold €300m of unsecured notes with speculative grade ratings, entirely to investment grade investors.

With increased activity in the euro investment grade and US high yield markets, bankers feel confident the European high yield pipeline should start making real progress, despite this week’s activity being restricted to a single roadshow.

The Euromoney Smaller European Companies Index Series currently comprises 1350 companies across 16 European countries.

Akelius Residential Property, the Swedish property group, was the only borrower roadshowing on Tuesday for a speculative grade bond in Europe, but bankers said investor feedback was positive.

The Swedish central bank (Riksbank) met on Wednesday amid speculation that it would announce an extension of its sovereign bond purchase programme to Swedish covered bonds, say analysts at Société Générale.

Akelius Residential Property, the Swedish property group, will begin a roadshow on Monday, September 7, for its first high yield bond in euros.