RBI overcomes complicated credit story to price tier two
Raiffeisen Bank International overcame investors’ concerns about potential equity issuance and recent increases in loan loss provisions to sell €500m of 10 year tier two paper on Tuesday. The deal traded up on Wednesday, vindicating the issuer’s choice to keep the deal small.
Lead managers Bank of America Merrill Lynch, HSBC, JP Morgan and RBI gathered around €1.5bn of orders for the €500m deal, allowing them to tighten pricing to 6% from the 6.125% initial pricing thoughts and subsequent guidance of 6%-6.125%.
At the last update before books were shut at
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