Portugal fixes spread on new 10-year bond

Tue May 7, 2013 5:21am EDT

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LONDON, May 7 (IFR) - The Republic of Portugal, rated Ba3/BB/BB+, has fixed the spread on its no-grow EUR3bn 10-year bond at mid-swaps plus 400bp, a bank managing the deal said on Tuesday.

Indications of interest from investors were reported at EUR4bn when lead banks opened books with official guidance at mid-swaps plus 400-405bp earlier on Tuesday, following initial marketing at 405bp area.

European and Asian order books will close at 10.45am London time, with US investors getting longer to place their orders.

Portugal's outstanding 10-year bond, maturing in October 2023, was bid at mid-swaps plus 391.5bp when the price thoughts were released, indicating that investors are being offered a new issue premium of 8.5bp to buy the new issue, which matures in February 2024.

Caixa Banco de Investimento, Citi, Credit Agricole, Goldman Sachs, HSBC and Societe Generale are managing the deal, in what could be a step towards the country qualifying for the European Central Bank's bond-buying scheme. (Reporting by John Geddie, editing by Julian Baker)

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