November 6, 2012 / 12:56 PM / 5 years ago

Mapfre bond sees solid demand - IFR

MADRID, Nov 6 (Reuters) - Spanish insurance company Mapfre has seen strong demand for its 1 billion euro ($1.3 billion) bond issue, IFR Markets, a Thomson Reuters news and market analysis service, reported on Tuesday.

The company had received over 2 billion euros of orders for the three-year paper announced on Monday, including a number of non-domestic accounts, IFR reported, as investor sentiment towards southern European issuers improves.

Books for the bond opened with a coupon around 5.375 percent, IFR said, and were finalised at 5.125 percent as orders poured in. The offer is Mapfre’s first debt issue in five years.

Spain itself last paid an average yield of 3.227 percent for a three-year bond on Oct. 18.

While investors had turned cold on issues from Spain and other countries at the centre of the euro zone crisis, appetite has picked up since European Central Bank president Mario Draghi said he would take action to secure the future of the euro.

Banco Espirito Santo placed 750 million euros in three-year unsecured bonds last week, marking the return of Portuguese banks to the debt market. ($1 = 0.7823 euro) (Reporting by Clare Kane; Editing by Dan Lalor)

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