Sweden's Nordea Bank, a provider of loans to the shipping industry for decades, has easily sold a risky debt instrument with the lowest coupon rate in European market history.
The financial institution, which is relocating its headquarters to Helsinki, received approximately EUR 5bn ($5.9bn) of orders for the EUR 750m bond carrying a 3.5% coupon rate.
The note is in the form of additional tier 1 (AT1) capital, a type of debt that can pay a coupon rate forever but may skip coupon payments if the bond issuer experiences financial pressure.
