LONDON, March 26 (IFR) - Dutch brewer Heineken, rated Baa1/BBB+, cancelled a 13-year benchmark-sized bond on Tuesday, as demand for a simultaneous eight-year deal eclipsed the bid for the longer paper.
Deutsche Bank, HSBC, Rabobank and Societe Generale had started marketing the 13-year at mid-swaps plus 90-95bp before revising guidance to mid-swaps +95bp on combined books for both tranches of EUR1.3bn.
"Heineken's approach to the market is opportunistic in terms of seeking markets and tenors that offer attractive coupons," one of the leads on the deal said.
The issuer only launches tranches when they can be confident of a positive secondary market performance, he added.
Guidance on the eight-year tranche has been set at swaps +65bp for a EUR500m issue. The book on that tranche has reached EUR900m, leads said.
(Reporting By Josie Cox, editing by Alex Chambers)