There has not been much issuance from the Nordic regions during 2001, but a number of transactions are expected by the end of the year.

The first synthetic deal from the Nordic regions is expected to close by year-end. AB Spintab will originate a commercial mortgage-backed security (CMBS), reportedly with Credit Suisse First Boston as lead-manager. Bank funding is relatively cheap in the Nordic regions so that there are also expectations of synthetic collateralized loan obligations, although these are more likely in 2002. But it is expected that a Norwegian collateralized debt obligation, and also a CLO will close this year.

EuropeLoan Bank is expected to close a EURO100m RMBS deal, secured on Swedish mortgage loans sold over the Internet. But the special purpose vehicle will be located in Belgium. Future Europe Loan deals may involve mortgages from Finland, also reported to have a busy pipeline.

Valtion Asuntorahasto, the housing fund of Finland, is finalizing its Fennica 6 state housing securitization. It is expected to be about EURO500 million to EURO600 million. This follows the EURO800 million Fennica 5 in October 2000.

SBAB, the Swedish National Housing Finance Corporation, is expected to launch a EURO1 billion follow up issue to SRM Investment No.1 Limited by the end of the year. The first SRM deal was closed in November 2000.

SEB Merchant Banking, Debt Capital Markets and Svenska Handelsbanken are launching EURO275 million Framtiden Housing Finance No.3, following on from the second Framtiden issue in October 2000. These deals are only emerging now because the issuers have been waiting about a year since their last issues.

A transaction secured on a farm loan is also expected to close in Sweden. In 2002 at least two repeat issue CMBS are expected in the first quarter.

Total securitization issuance volumes for 2001 should reach a similar level to 2000, which Fitch calculated to be $2.8 billion.

There are also trade receivables deals going into conduits. Anna Spinks at Danske Bank said this is mainly driven by corporates looking for alternative funding and improved financial ratios. Nordea has already structured one deal into the Viking conduit, and plans a further two deals by the end of the year.

A trade receivables transaction is also expected from a paper and pulp producer in the Nordic countries. Danske Bank has not placed any Scandinavian deals into its conduit this year, and does not expect to until next year, but reports a lot of interest from medium sized companies in Sweden and Denmark. Deal potential is greater in Sweden and Finland because companies in those countries are generally larger, and can build up trade receivable asset pools of a suitable size.

Spinks believes that regulatory capital issues are driving securitization, as in 2000, and the uncertainty in corporate markets might turn more issuers to securitization.

An official at Nordea said he expected the Nordic telecom companies to do securitizations, though he could not say when.

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