Swedbank

Banks have ramped up their use of green senior bonds in the fourth quarter of 2017, with many of their latest offerings sporting fantastic results in terms of pricing. But, as Tyler Davies reports, European financial institutions have yet to mix the principles of green finance with the tenets of bank capital — an experiment that could be even more beneficial for everyone involved in the growing green bond market.

A debut green bond from Swedbank this week was the clearest indicator yet that green bonds can price more tightly and outperform the rest of the FIG debt market, including perhaps covered bonds, writes Jasper Cox.

Rating: Aa3/AA-/AA-

Oslo-listed oil and gas exploration firm Aker BP raised Nkr4.1bn ($500m) through an accelerated bookbuild, to fund its acquisition of Hess Norge, the owner of two Norwegian oil fields.

Swedbank set tight final terms for its €500m five year senior green bond on Monday, as the Swedish lender followed green debuts from Nordea and Skandinaviska Enskilda Banken (SEB) earlier this year.

Swedbank is the latest issuer to unveil a green bond framework, with a roadshow for the first deal to take place between Wednesday and Friday next week.

Finnish property company, Mercada, was a lone issuer in the corporate bond market on Monday. Its €175m five year deal q was printed while issuers that completed roadshows last week paused.

Nordea’s order book was more than twice oversubscribed for a €2bn deal across two tranches on Tuesday, while Swedbank also found demand for a sterling deal. The deals suggest that, despite tight spreads, investors are not deterred from senior preferred from the right names.

Kepler Cheuvreux has welcomed Swedbank into its European ECM fold as it continues to face off against global investment banks. It has created a model that is tough for others to replicate, writes David Rothnie.

A week long roadshow and investor meetings in six countries paid off for Swedish debt collector Intrum Justitia, which sold the bond to fund its merger with Lindorff with an average coupon of below 3% on Friday.

Covering four tranches, two currencies and fixed and floating rate payouts, what could be the largest high yield bond since April 2016 hit screens on Monday as Intrum Justitia embarked upon a week-long roadshow for a €3bn bond.

Suomen Hypoteekkiyhdistys (Hypo) and Bank of New Zealand have announced marketing programmes ahead of expected covered bond deals.