SFEF heads five year euro queue

The euro market is preparing for over Eu11bn of five year debt this week with SFEF, Austria and Ireland all vying for investor attention. Books on the SFEF transaction, led by its usual banks BNP Paribas, Calyon, HSBC, Natixis and SG, have already exceeded the Eu5bn mark, auguring well for the other issuers. Guidance on SFEF was mid-swaps plus 15bp to 20bp but the deal is likely to price at the tight end. Austria is paying 10bp to 15bp over while Ireland is pricing at 90bp over mid-swaps in order to raise as much money as it can. Meanwhile, KfW is expected with its Eu5bn benchmark next week with lead managers BNP Paribas, Credit Suisse and Deutsche Bank.