European new issues
LONDON, Aug 28 (IFR) - Here are details on syndicated bond issues in the European bond market on Tuesday:
A hugely active day for late August, with SSA and corporates dominating. In the SSA world, books closed in excess of EUR2bn on EAA's EUR1.75bn 1.125% 5-year benchmark with the spread set at MS+18bp, the tight end of guidance at plus 18/20bp via Barclays, Deutsche Bank, Goldman Sachs, LBBW and UBS. OBL163+77.1bp equivalent. Finland brought a 10yr, where lead banks Credit Agricole, Credit Suisse, Danske Bank, Deutsche Bank and JP Morgan gathered EUR7.4bn of orders and printed a EUR4bn 1.625% issue at swaps plus 3bp, equivalent to Bunds plus 40.8bp. In dollars, the spread on KfW's USD3bn no-grow 5-yr global benchmark has been set at MS+10bp, versus guidance of +10/12bp. BNPP, DB and JPM are joint leads. Hamburg has priced a EUR250m 1.5% September 2020 LSA at mid-swaps plus 4bp via HSBC and HSH Nordbank. And EIB priced a NOK500m 3% May 2019 at MS+20bp. Coming up is the EFSF (European Financial Stability Facility, rated Aaa/AA+/AAA) which has mandated Citigroup, HSBC and J.P. Morgan for a new EUR3bn issue with a 10-yr maturity. IPTs have been set at mid-swaps +mid 50s. Corporates are seeing a broad supply run, too. Books on Volkswagen Leasing's 10-year euro deal grew to over EUR2bn enabling leads to revise guidance to mid-swaps +70-75bp, from initial price thoughts of +75-80bp. The group, guaranteed by Volkswagen Financial Services AG and rated A3/A-, earlier on Tuesday opened books on the 10-year deal via leads Barclays, BNP Paribas, RBC and UniCredit. Books on Cargill's (A2/A/A) seven-year EUR500m deal grew to around EUR4bn, allowing leads to set the final spread at mid-swaps +57bp for pricing later on Tuesday afternoon. IPTs were MS+70bp area, revised to +60bp area (+/-3bp). The transaction was run by Deutsche Bank, HSBC and RBS. UK power and gas group Scottish & Southern (A3/A-) has mandated Bank of America Merrill Lynch, Barclays, BNP Paribas, Credit Suisse and Morgan Stanley to lead a European roadshow ahead of a potential PNC5yr hybrid. The investor meetings are due to commence on September 3. Telstra, rated A2/A, has mandated BNP Paribas, Deutsche Bank, HSBC, JP Morgan and Lloyds Bank to arrange a series of pan-European investor meetings, commencing September 3, sources told IFR on Tuesday, adding that a capital markets transaction may follow, subject to market conditions. Louis Dreyfus Commodities BV (NR/NR), a world leader in the agribusiness space, has mandated Citigroup, Credit Suisse and HSBC for a potential issuance of hybrid capital securities, which may follow a series of investor calls subject to market conditions, sources told IFR on Tuesday. In Australian dollars, bookbuilding on the five-year BP Kangaroo deal is heard going well, and is now in excess of AUD350m. A number of accounts are heard still to revert, and price guidance remains unchanged at s/q asset swaps plus 115bp area. Expect book to close tomorrow Sydney time, for pricing thereafter by leads ANZ and UBS. BP is rated A2/A. Swiss francs are also active with local name PfZ coming with a dual-tranche, while Russian VTB and Danske Bank are both bringing long four-year senior deals due December 2016. Danske opened books for a minimum CHF100m, pricing CHF125m in line with MS+127bp guidance with a 1.5% coupon, equivalent to a 1.496% yield or Confeds plus 159bp.
Full details of all the day's pricings on Reuters page TGM17522, Bloomberg TG17522, or here on IFR Markets.com. For the pipeline of upcoming deals see Reuters TGM17546, Bloomberg TG17546, or here on IFR Markets.com. Jon Penner email@example.com
(Reporting by IFR Markets)
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