(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
Belgium issued its first syndicated deal of 2013 last month:
a EUR4bn 10-year via Barclays, Citigroup, RBS and Societe
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
(Reporting by John Geddie; editing by Alex Chambers and Philip