Nordea Bank prices €8.4 billion securitization deal; secondary CLO market volume rises

By Cristal Cody

Eureka Springs, Ark., Aug. 24 – New securitization issuance includes a transparent synthetic transaction from Nordea Bank AB.

The bank announced on Wednesday that it completed an €8.4 billion corporate and SME loan securitization.

The deal had been in the works since the first quarter of 2015.

“The transaction reduces Nordea’s credit risks through a risk-sharing structure, whilst enhancing Nordea’s CET1 ratio, allowing Nordea to recycle freed-up capital into additional lending to corporations and SMEs,” Jonas Backlund, head of Nordea Bank’s credit structuring and execution, treasury and asset liability management, said in the release.

Euro-denominated CLO issuance, not including Nordea Bank’s offering, is nearly €11 billion year to date, according to Prospect News data.

Secondary market volume rose on Tuesday with 49 investment-grade CBO/CDO/CLO issues totaling $126.2 million and 34 non-investment-grade CBO/CDO/CLO securities totaling $238.13 million traded, according to the latest data from Trace.

On Monday, $85.13 million in 10 high-grade issues and $68.04 million in 18 non-investment-grade securities were traded.

Nordea Bank announced on Wednesday the selected portfolio consists of about €8.4 billion in corporate and SME loans from more than 3,000 borrowers across Sweden and Denmark and spread across a range of industries and asset classes.

The transaction was arranged by joint structuring advisers Barclays, J.P. Morgan Securities plc and Nordea Markets.

© 2015 Prospect News.
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