Question 1

What is Storebrand Boligkreditt?

Accepted Answer

Storebrand Boligkreditt is a specialized mortgage credit institution (boligkreditt) in Norway that operates as a covered bond issuer. The company is a wholly-owned subsidiary of Storebrand Bank ASA, which itself is part of the larger Storebrand Group. As a dedicated mortgage company, Storebrand Boligkreditt focuses exclusively on acquiring residential mortgage loans and financing them through the issuance of covered bonds in the Norwegian and international capital markets.

The institution operates under strict regulatory requirements for covered bond issuers in Norway, maintaining low risk levels and high-quality mortgage portfolios.

Question 2

When was Storebrand Boligkreditt founded?

Accepted Answer

Storebrand Boligkreditt AS was established in 2019, receiving its authorization from the Norwegian Financial Supervisory Authority (Finanstilsynet) on April 28, 2019. The company was created as part of Storebrand Bank's strategy to optimize funding and provide competitive mortgage financing through the covered bond market.

While Storebrand Boligkreditt itself is relatively new, it is part of the Storebrand Group, which traces its roots back to 1767, making it one of Norway's oldest financial institutions.

Question 3

Where is Storebrand Boligkreditt headquartered?

Accepted Answer

Storebrand Boligkreditt is headquartered in Lysaker, a business district in the municipality of Bærum, just outside Oslo, Norway. The company shares its location with the broader Storebrand Group headquarters.

Question 4

Where does Storebrand Boligkreditt operate?

Accepted Answer

Storebrand Boligkreditt operates throughout Norway, focusing on the residential mortgage market. The company acquires mortgage loans from its parent bank, Storebrand Bank ASA, which serves customers across various regions of Norway. While the mortgage portfolio serves Norwegian homeowners nationwide, the company's operations are centralized in Lysaker.

The institution issues covered bonds in multiple markets, including Norwegian (NOK), European (EUR), British (GBP), Swedish (SEK), and Swiss (CHF) markets, though its underlying mortgage assets are exclusively Norwegian residential properties.

Question 5

What services does Storebrand Boligkreditt offer?

Accepted Answer

Storebrand Boligkreditt provides residential mortgage loans to Norwegian homeowners, with all mortgages secured by residential properties within a maximum loan-to-value (LTV) ratio of 75%. The company's core business model involves:

Mortgage Products: The company offers variable-rate residential mortgages acquired from Storebrand Bank. All mortgage loans in the portfolio carry floating interest rates tied to Norwegian market rates.

Covered Bond Issuance: Storebrand Boligkreditt issues covered bonds (obligasjoner med fortrinnsrett) in both domestic and international capital markets to fund its mortgage portfolio. These bonds benefit from the preferential regulatory treatment afforded to covered bonds under Norwegian and EU legislation.

Funding Solutions: The company provides cost-efficient funding for its parent bank by accessing the covered bond market, which typically offers more favorable terms than traditional senior unsecured funding.

The company does not have direct customer-facing operations, as all customer service and mortgage origination activities are handled by Storebrand Bank ASA under servicing agreements.

Question 6

What makes Storebrand Boligkreditt unique?

Accepted Answer

Part of a Historic Financial Group: As a subsidiary of the Storebrand Group, which dates back to 1767, Storebrand Boligkreditt benefits from the brand recognition and financial strength of one of Norway's oldest and most established financial institutions.

Specialized Covered Bond Model: The company operates as a pure covered bond issuer with a narrow, specialized mandate focused exclusively on residential mortgage lending and covered bond funding, ensuring operational simplicity and risk focus.

High Credit Quality: Storebrand Boligkreditt maintains high-quality underwriting standards with conservative LTV ratios, positioning the company for strong credit performance and investor confidence in its covered bond issuances.

Integrated Financial Services: The company is part of Storebrand Group's comprehensive financial services ecosystem, which includes life insurance, pension savings, asset management, and banking, providing strategic synergies and diversified revenue streams for the parent organization.

Regulatory Excellence: Operating under Norwegian Financial Supervisory Authority oversight and complying with EU covered bond harmonization directives, the company adheres to stringent capital adequacy, liquidity, and risk management requirements.

Question 7

What type of financial institution is Storebrand Boligkreditt?

Accepted Answer

Storebrand Boligkreditt is classified as a mortgage credit institution (boligkredittforetak) under Norwegian law. This specialized institution type is designed specifically for companies that issue covered bonds backed by residential mortgages.

In the Norwegian financial system, mortgage credit institutions are regulated credit institutions with narrowly defined activities. They are licensed and supervised by the Norwegian Financial Supervisory Authority (Finanstilsynet) and must comply with the same capital requirements as traditional banks under Basel III and CRD IV frameworks.

As a covered bond issuer, Storebrand Boligkreditt operates under chapter 11, section II of Norway's Financial Institutions Act (Finansforetaksloven) and related covered bond regulations. This regulatory framework, which aligns with EU covered bond harmonization directives, ensures that the company maintains high-quality cover pools, appropriate overcollateralization levels, and robust risk management practices to protect covered bondholders.

Storebrand Boligkreditt

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About Storebrand Boligkreditt in Norway

Storebrand Boligk­reditt