Stadshypotek will hold a non-deal roadshow in Australia next week after having set up an Australian MTN programme, which an official at the issuer said was another “building block” in its funding strategy – which he noted had steered clear of any need for government guaranteed or central bank funding.

Stadshypotek parent, Svenska Handelsbanken, Stockholm

Thomas Åhman, deputy head of treasury at Handelsbanken,  Stadshypotek’s parent, told The Covered Bond Report that the issuer had been considering approaching the Australian market since the beginning of the year.

“For us, it is another building block in our long term strategy,” he said, “to help make sure that we have a more and more diverse investor base over time.

“There is no deal imminent,” he added. “We are going on a non-deal roadshow next week to Australia to make sure investors know our name and our business, and then we will see.”

As well as having been active in euros, the Swedish issuer entered the US dollar market in September 2010. However, Åhman said that the Swedish market – the fourth largest domestic covered bond market – will remain the main reference for Stadshypotek.

“We could refinance 100% of our needs in the domestic market if we wanted to, so if we are issuing internationally, it’s for long term diversification reasons,” he said. “And if we issue in euros, dollars or other currencies, it is important for us that the all-in cost is as close as possible to what we could achieve in the domestic market.”

While its peer Swedbank has issued more covered bonds than usual this year to help refinance government guaranteed issuance (see relevant article here), Handelsbanken/Stadshypotek did not issue any government guaranteed debt and also avoided having to use any central bank facilities throughout the crisis, said Åhman.

Moody’s said today (Friday) that it has assigned Stadshypotek’s programme a Aaa rating.