Swedish krona

Demand for SRI bonds and favourable basis swaps are boosting the Swedish krona market for SSAs, despite concerns late last year that the Swedish central bank’s tightening monetary policy and the krona’s appreciation against the dollar could stifle issuance. The European Investment Bank, Nordic Investment Bank and African Development Bank all came at the long end of the krona curve this week.

A growing enthusiasm behind sustainable debt issuance has been adding to supply volumes in Swedish krona market in 2018, with the European Investment Bank tapping a Climate Awareness Bond this week.

Subordinated bonds from financial issuers have been back in favour in the Swedish krona market this year, with investors seeking out higher yields compared with other types of credit.

The Nordic Investment Bank issued its largest Swedish krona environmental bond on Wednesday as demand for socially responsible investments grows in Scandinavia.

Korea Development Bank (KDB) has made its debut in the Swedish krona market, becoming the second Korean public sector entity to do so this year.

Volvofinans Bank is preparing to issue Europe’s second green bond from the automotive sector. While the deal is already attracting interest from investors, its use to finance hybrid and electric cars may not tick the green box for all investors.

Volvofinansbank today announced it would meet investors in Stockholm on Monday May 8 to present a framework for its inaugural green bond. The deal will be one of the few green bonds from the automotive sector.

The City of Gothenburg is to raise debt in the Swedish and Norwegian currencies.

The African Development Bank and FMO took advantage of a maturing Scandinavian SRI investor base this week, printing SRI bonds worth Skr1.25bn ($135.1m) and Skr700m respectively.

The African Development Bank printed a Skr1.25bn ($135.3m) June 2022 green bond on Thursday. AfDB's trade follows FMO's Skr700m seven year sustainability bond that was priced on Tuesday.

FMO has raised Skr700m ($75.4m) with its first sustainability bond in the Swedish currency.

FMO is set to raise a minimum of Skr500m ($54.25m) with a seven year sustainability bond on Tuesday, while KfW plans to bring a dollar green bond.