(Adds fair value, background)
By John Geddie
LONDON, Feb 18 (IFR) - The Kingdom of Belgium, rated Aa3/AA/AA, is garnering initial interest in its new five-year bond sale by offering investors a concession of around 5bp.
Lead managers Credit Agricole, HSBC, ING and KBC are taking indications of interest in the new OLO 69 at mid-swaps plus high teens, said a bank source.
Fair value on the upcoming June 2018 debt sale is mid-swaps plus 13bp, based on an interpolation of Belgium's outstanding bonds just after the new deal was announced, according to Reuters data.
Belgium issued its first syndicated deal of 2013 last month: a EUR4bn 10-year via Barclays, Citigroup, RBS and Societe Generale.
That deal priced at mid-swaps plus 62bp, paying a new issue premium of 4bp, according to the Belgian debt agency.
With two deals in the same number of months, Belgium is on course to wrap up its planned syndicated business in the first quarter, a feat it achieved last year.
The soft-core eurozone country aims to raise EUR37bn in debt with maturities in excess of one year - known as OLOs - in 2013 mainly via auctions. In 2012, it raised EUR42.95bn.
Anne Leclercq, director of treasury and capital markets at the Belgian Debt Agency, previously told IFR that a third "very long-dated" syndication is planned for "later in the year".
Official bookbuilding on the new bond will start on Tuesday, said the source. Belgium's auction scheduled for February 25 has been cancelled. (Reporting by John Geddie; editing by Alex Chambers and Philip Wright)