Nordea Markets

Swedish firms flock to MTN market in search of covered and senior funding

BEWiSynbra, a Norwegian packaging company, has contacted bondholders to get permission to refinance €215m of notes early with a new floating rate sustainability-linked bond issuance.

Nordea said on Wednesday that it had received its final minimum requirement for own funds and eligible liabilities (MREL) last quarter. The Finnish firm is looking to put a greater emphasis on non-preferred senior debt, rebalancing regulatory resources away from equity and ordinary senior bonds.

A handful of borrowers have found their additional tier one (AT1) paper upgraded into investment grade territory by Moody’s this week, following adjustments in how the agency treats high trigger instruments.

Loomis, the Swedish cash handling company, has signed a €265m-equivalent credit facility, with the borrower maintaining the same level of net bank facility debt.

Teknos, a Finnish maker of paints and industrial coatings, strayed from the standard playbook when designing the key performance indicators for its first sustainability-linked bank loan, a €140m deal.

Volkswagen Financial Services on Monday became the latest company to print a sterling bond through its euro curve, but supply for sterling investors is expected to remain limited.

GN Store Nord, a Danish hearing aid maker, has signed a €350m revolving credit facility, pulling syndicated and bilateral lines into one deal.

Hybrids and crossover rated corporate bond issuers hit screens this week, as the thirst for yield returned to the European market.

Heimstaden Bostad, the Swedish housing company, had a trickier time in the market with its hybrid capital issue on Thursday than Poste Italiane had a day earlier, suggesting that there is still some sectoral sensitivity among yield-hungry corporate bond buyers.

Sweden became the latest European sovereign to access the ultra-long end of the curve this week as it launched its first 50 year bond, opening up the long end of the krona curve for other highly rated names.

Dometic Group, the Swedish maker of appliances for boats and camper vans, has successfully completed a Skr3.35bn (€331m) M&A financing.