The transaction, Luminor’s inaugural SEK-denominated bond, supports the bank’s strategy, strengthens its MREL base, and enhances its liability structure.
Palle Nordahl, Chief Financial Officer, commented:“We are delighted to have diversified our investor base with our first bond denominated in Swedish krona. The success of the issue ensures that we are well placed to support our customers - individuals and companies resident in the Baltic countries - and grow our business.”
Luminor held a series of meetings with Scandinavian investors and launched its new issue after receiving positive feedback. The issue was launched following a well-attended global investor call and was quickly oversubscribed. The size and quality of the orders enabled Luminor to tighten the price of the new security to the lower end of the guided range. Investors in Sweden accounted for half of the total order book with strong demand also from investors in the UK and Finland.
The bond, which is callable one year prior to maturity, and is rated Baa1 by Moody’s, is listed on the Irish Stock Exchange, and was issued under Luminor’s Euro Medium Term Note and Covered Bond programme. DNB Markets and Nordea acted as joint lead managers for the transaction.
