Scope rates OP Corporate Bank, the senior unsecured bond issuing entity of OP Financial Group, on a subscription basis. To view Scope’s subscription rating and rating report, or to register, please click here.

The bank had gone into the market with initial price thoughts of MS+75bp, tightening to price guidance of MS+60bp plus or minus two basis points, and fixing at the tight end on the back of order flow, according to Bond Rader (www.bondradar.com). The bond follows publication of the bank’s Green Bond Framework, which includes seven key eligible sectors for use of proceeds: renewable energy, energy transmission, energy efficiency, green buildings, pollution prevention and control, environmentally sustainable management of living natural resources and land use, and clean transportation.

In Scope’s 6 December 2021 rating report, Marco Troiano, head of Scope’s financial institutions team and lead analyst on OP, noted that the issuer rating reflects the crucial role OP Corporate Bank plays within OP Financial Group, the leading financial group in Finland. As a member credit institution, OP Corporate Bank benefits from the joint liability scheme within the Financial Group. The intrinsic financial strength of the group drives the ratings of the issuer.

The group is well positioned to withstand a cyclical deterioration in the operating environment, thanks to its well-diversified business model, which has proved resilient over time, and its solid revenue and profit generation with relatively low credit risk.

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