Tight A2A sub-benchmark highlights how investors are hunting yield

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By Nigel Owen
11 Oct 2017

On Wednesday, A2A became the second Italian utility this week to sell a 10 year new issue. The company achieved the current benchmark low single digit new issue premium for its €300m deal.

Snam sold a €650m 10 year deal on Tuesday at 57bp over mid-swaps. A2A is rated BBB, the same as Snam, by Standard & Poor’s, but Moody’s rates the issuer Baa3, two notches lower than Snam. This goes some way to explain the difference in spreads ...

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