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
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
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)