May 21, 2024 07:40 GMT
Nordea Tier 2 Green Issue: We See FV At MS+135bp Area
CREDIT SUPPLY
Nordea (NDAFH: Baa1 pos/A-/A) 11NC6 Tier 2 green bond issue; IPT is MS+170bp area, we see fair value at MS+135bp.
- Nordea is issuing EUR benchmark Tier 2 green sub debt, 11NC6 with expected rating at Baa1/A-/A.
- Nordea only has two existing green bonds but Credit Mutuel (BFCM) has a better-formed curve, the slope of which is 10-11bp per year in the 6yr area. Putting this term premium onto the NDAFH 4.875% at 4.8yr workout gives a fair value of MS+135bp area, in our view.
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