Successful inaugural bond issue for Danske Hypotek

In June Finansinspektionen granted approval for Danske Hypotek to start a mortgage institution in Sweden. Danske Hypotek’s first covered bond was launched this week, and response from the market was very positive. The successful bond issue strengthens Danske Bank’s growth strategy in Sweden.

Danske Hypotek has now started its operations, and has completed its inaugural bond issue in the Swedish benchmark market for covered bonds. The bond issue, which was conducted in a syndicated format, was very well received by the market, and the order book was heavily oversubscribed. 

“We are pleased that the issue was met with strong demand. The quality of the order book was excellent, and there was good distribution between different types of institutional investors. This was a very successful first step for us in our goal of long-term involvement in the Swedish market. Going forward, our intention is to, on an ongoing basis, meet market demand by issuing additional bonds and gradually increase issued volume in accordance with established market practice. We are looking forward to becoming a regular issuer in the Swedish market,” says Per Tunestam, CEO Danske Hypotek.

“With this issue, Danske Bank has gained access to the same funding source as other large Swedish banks, which creates long-term and sustainable conditions for continued profitable growth in the Swedish banking market,” says Stojko Gjurovski, Head of Personal Banking at Danske Bank Sverige.  
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