SR-Boligkreditt scored a “happy result” today (Wednesday) with its debut dollar benchmark, a $600m five year Reg S issue that was deemed to have come at only a modest pick-up to DNB. Deutsche yesterday tapped by Eu250m a Eu500m 2026 Pfandbrief.

Following a mandate announcement yesterday (Tuesday), SR-Boligkreditt leads Goldman Sachs, JP Morgan, Nomura and TD Securities launched the five year Reg S issue this morning with guidance of the 58bp over mid-swaps area.

The book peaked at $700m including joint lead manager interest, before the spread was set at 55bp and the size at $600m (Eu563m, Nkr5.16bn).

“We are very pleased to have been able to go larger than $500m and to tighten the pricing,” said a banker at one of the leads. “For an inaugural dollar deal for an issuer that has only been active in the euro market for a few years, it’s a very happy result.

“Being Reg S, this deal was relying on the euro investors, but the recent strong 144A trades from the Nordics showed that there was sufficient take-up from Europe. The fact that SR-Boligkreditt’s deal was aimed at a smaller investor base explains the rather more modest size.”

Fellow Norwegian DNB Boligkreditt on 21 March sold the first US dollar benchmark covered bond from the Nordics since May 2015, a $1.5bn five year, before Sweden’s Stadshypotek sold a $1.25bn five year on Wednesday of last week.

SR-Boligkreditt’s new issue was deemed to have offered an 8bp pick-up over DNB’s five year, which was seen at 47bp, mid, today, after having been priced at 50bp. Bankers noted that this is in line with the differential between the two issuers’ euro curves.

“That they didn’t have to pay up more than usual for this dollar debut is quite impressive and is a good result for them,” said a syndicate banker away from the leads.

Bankers estimated that the dollar spread of 55bp was equivalent to a euro spread of 6bp over mid-swaps, which they said was slightly wider than where SR-Boligkreditt would have been able to price an equivalent euro-denominated issue – in line with the outcomes for DNB and Stadshypotek.

Deutsche Bank leads Deutsche, DZ Bank, HSBC, SEB and RBI reopened the Eu500m June 2026 Pfandbrief for a Eu250m no-grow tap with guidance of the mid-swaps minus 4bp area yesterday. The spread was later fixed at minus 6bp on the back of books over Eu400m

Bankers said the tap offered a premium of 2bp, with the original issue trading at minus 8bp, mid, pre-announcement.

A syndicate banker at one of the leads said the deal was not launched in response to reverse enquiries.

“Basically the issuer had room to print Eu250m but not more,” he said. “The bond has performed strongly since it was launched, so they decided to take the opportunity presented by the current market environment.

“The issuer’s sweet spot tends to be in the eight to 10 year area, so this made a lot of sense for them.”

The original issue was priced at 1bp through mid-swaps last June.

We are now in Oslo ahead of the ECBC plenary tomorrow and hope to see many of you there!