Sterling takes centre stage

Sterling investors are showing plenty of appetite for bonds at both the short and long end of the market despite a challenging start to the week for borrowers in euros. After Centrica on Friday raised £650m in five year and 13 year paper, Cadbury is taking advantage of the liquidity at the shorter end of the market with a long five year deal marketed at Gilts plus 290bp to 300bp. At the longer end Norwegian oil firm Statoil is issuing its inaugural sterling bond, with 22 year paper marketed at a guidance price of Gilts plus 215bp to 225bp alongside a dual tranche euro deal, its first since 2003, with six year paper marketed at mid-swaps plus 155bp to 165bp and 12 year paper at plus 215bp to 225bp. To find out how this transaction and all the deals in the market this week fare, read EuroWeek this Friday.