Lloyds takes plaudits and Sfr650m amid Swiss swap rally
Lloyds TSB Bank upped the size of a Swiss franc bond, its debut, despite running into a sharp rally in swap rates that forced it to price at the wide end of guidance to maintain the fixed yield of 2.5% that it had promised investors. Bookrunners Credit Suisse and UBS priced the Sfr650m of short five year bonds at 162.3bp over mid-swaps, the wide end of the 160bp area guidance.
Lloyds did everything right here it announced during bookbuilding that it would stick to the 2.5% yield, said a UBS syndicate banker. It priced the biggest trade for a foreign financial in one shot this year, when we expected perhaps Sfr300m or Sfr400m.
Even at the wider end
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