Nordic Capital Markets (June 2024)

Nordic countries are raising their defence spending, amid fears of further Russian aggression in the region. State finances are generally sound but fiscal and monetary stimuli may also be needed, reports Philip Moore

In a bid to avoid a reprise of the economic trauma of the 1970s, Iceland is enduring its highest real interest rate in many years. Will the short term pain bring long term gain? Philip Moore reports

What is the future for Iceland’s capital markets and economy? GlobalCapital convened a group of bankers in Reykjavik in May to discuss key themes, including inflation, the banking industry, green energy and the impact of recent volcanic activity

The sovereign’s scarcity in the market compromises its pricing power and has a knock-on effect for the country’s banks, causing frustration for their bankers. Can they find a solution? Philip Moore reports

Iceland has implemented one of the strongest financial regulatory frameworks globally as it looks to shake off the spectre of the 2008 crisis. But are these stringent requirements too restrictive? Philip Moore investigates

The Nordic region has a long and proud history in social welfare, sustainability and related areas, so it is naturally well placed to play a prominent role in green finance too. GlobalCapital gathered a panel of prominent market participants together in June to discuss key themes and consider the next big developments

The Nordic market has been a nursery for ESG debt innovation since the market’s inception. Now banks in the region are working on new ways to fund the green transition, writes Frank Jackman

Nordic banks have had a great start to 2024 in the bond market, compressing their unsecured spreads to well below where they could fund in previous years. Despite these rich levels, investors have shown no reticence when it comes to placing orders, reports Frank Jackman

After a rough 2023 when Nordic banks were forced to issue covered bonds at shorter tenors, borrowers have relished the chance to fund further out on the curve so far this year, securing tightly priced and popular deals, writes Frank Jackman

Íslandsbanki is one of the leading players in Icelandic banking and is an innovator in the country’s capital markets, notably being the first issuer of covered bonds. It has cultivated a broad investor base across the capital spectrum and across Europe.

Leading lenders like DZ Bank are well placed to guide retail clients through challenging energy and renovation projects that are key to climate success.

Interest rates are expected to remain high most of this year due to persistent inflation. Landsbankinn’s Economic Research department nevertheless expects the economy to show resilience and grow. The department recently published an outlook on the subject, leading up to 2026.

As one of the country’s systemically important banks, Arion Bank has long been a leading force in the Icelandic market and in recent years has extended its focus to the wider Arctic region. In the retail segment, it serves half the entire Icelandic population through a diverse product offering. Its cutting-edge corporate and investment banking operation also boasts more than half the country’s companies as clients. But Arion differentiates itself from peers on several other fronts.

In turbulent times finance can be a guiding force. According to André Küüsvek, President and CEO of the Nordic Investment Bank, the bank has a growing appetite for investing in climate and nature, while securing regional resilience. In this Q&A, Küüsvek outlines his vision for the triple-A rated international financial institution based in Helsinki, detailing how NIB makes impact-driven investments to foster resilience.