Sweden

Sweden’s Nordea Hypotek opened the books on a new Eu1.5bn three year deal this morning, with initial guidance of the 12bp over mid-swaps area. The price has been fixed at 11bp over mid-swaps after leads BNP Paribas, HSBC, Nordea and UniCredit received Eu2bn of orders.

It might seem unbelievable now, but when Abba went on their inaugural European tour in 1974 a lack of demand meant that their first German concerts were not sold out. But Sweden’s four euro jumbo covered bond issuers faced no such problems last week, with German investors applauding their harmonious approach.

Canadian Imperial Bank of Commerce plans to roadshow a new covered bond programme early in the second quarter, following in the footsteps of not only those officially in the pipeline, but a variety of other issuers who have been visiting investors but adopting a lower profile.

Sweden’s Nordea Hypotek AB is to return to the covered bond market, having mandated BNP Paribas, HSBC, Nordea Markets and UniCredit as lead managers for a new euro denominated benchmark from it Eu10bn covered bond programme. Two Portuguese issuers are gearing up for their scheduled roadshows, with the mortgage pipeline showing signs of getting moving again.

With German public sector issuers returning in style this week, mortgage Pfandbrief and Scandinavian issuers are being tipped as likely successors in a market where the well stocked pipeline is as much a list of those that can’t access the market as a guide to who will be next. Indeed the problem for the primary market is that it looks like those that could issue won’t, and those that would issue can’t.

Skandinaviska Enskilda Banken AB (SEB) has priced its inaugural euro jumbo covered bond at 3bp over mid-swaps, at the tight end of the 4bp guidance. A final size of Eu1.5bn was decided on the three year deal after the bond attracted Eu4bn of orders.

Skandinaviska Enskilda Banken AB (SEB) has opened the books on its first euro covered bond, a three year jumbo with pricing set at 3bp over mid-swaps, the tight end of the 4bp guidance. The deal proved extremely popular with investors, gathering well in excess of Eu4bn of orders by midday.

SEB AB is looking beyond the turmoil in the market today as it lays the foundations for a long term presence in the euro market on its roadshow. Anders Kvist, head of group treasury at SEB, said that the Swedish issuer expects to issue one to two euro benchmarks a year and build a full curve.

Nordea Hypotek priced its Eu1.25bn three year Swedish covered bond at 2bp over mid-swaps this (Friday) morning, after leads Barclays, Natixis, Nordea and UniCredit closed books with just over Eu2bn of orders yesterday. The level of demand was seen by the issuer as supportive of its diversification strategy.

Demand for Nordea Hypotek’s three year new issue had reached Eu1.5bn by midday today (Thursday) after Barclays Capital, Natixis, Nordea and UniCredit opened books with guidance of the 2bp over mid-swaps area this morning. But the level of demand and the price that Nordea paid has led some market participants to ask why the issuer is visiting the euro market.

SEB is set to swim against the tide of domestic opinion with the launch of its inaugural euro denominated covered bond in mid-November. Other Swedish issuers have favoured the strong domestic market over the new pricing levels in euros, but SEB is expecting euro spreads to tighten between now and mid-November.

Swedish bank SEB is to issue its debut euro covered bond.