Rating: Aa1/AA-/AA+
Amount: Eu500m
Maturity: 2 November 2018
Issue/re-offer price: 99.716
Coupon: 4.37%
Spread at re-offer: 24bp over mid-swaps, 51.8bp over 4% July 2016 Bund
Launch date: Wednesday 25 October
Payment date: 2 November
Lead mgr: Citigroup
Bookrunner's comment:
This went well, and we are pleased to have pushed out longer than 10 years, an achievement that demonstrates the continuing health of the fixed rate sector of the senior market.
This was driven by strong continental demand for longer dated paper following last month's successful seven year transaction from Citigroup. It was oversubscribed, as investors found the 24bp spread very compelling.
The pricing was in line with comparable deals from the same issuer: Citi has a 2015 deal trading in the mid-to high teens and a 2019 in the low 20s. Some 25% of the deal went to insurance companies, 20% went to asset managers and the rest was split between banks and government agencies.
Accounts in the UK and Ireland took 40% and France 30%, with good distribution to the rest of Europe and Asia.