May 22, 2024 07:47 GMT
Swedbank Green SP Issue: We See Fair Value At MS+60-65bp Area
CREDIT SUPPLY
Swedbank (SWEDA: Aa3 pos/A+/AA) is issuing a benchmark EUR green senior preferred; we see fair value in the MS+60-65bp region.
- Swedbank is issuing EUR benchmark 6Y green senior preferred with IPT at MS+90-95bp area.
- 1Q24 results (25-Apr) were broadly in line and included a better loan loss charge than the market had. Estimates are little changed since then and the equity has done little since those results, either.
- Swedbank and SEB’s curves track very closely and are about 10-12bp tighter than SRBANK, which is one notch weaker-rated. Using the 6Y intercept at MS+73bp, less that rating pickup, gives us a fair value in the low-60s.
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