Maturity: 17 April 2025
Issue/fixed reoffer price: 99.132
Spread at reoffer: 379.4bp over mid-swaps
Launch date: Wednesday, April 10
Payment date: April 17
Joint books: Gazprombank, JP Morgan, Renaissance Capital, Société Générale, Sovcombank, VTB Capital
This is a very impressive trade. It’s the issuer’s third deal after debuting in 2015. We got a really diverse and high quality order book including some of the top institutional accounts across Europe.
We were able to tighten the price significantly. We opened at 6.375%-6.5%, then moved to 6.25% area, then 6.1%-6.15% before we fixed at 6.125%.
We felt that was pretty much flat to fair value. The issuer has a May 2024 trading at 5.9%. We felt that a curve extension of 20bp-25bp for a new six year was reasonable, which doesn’t leave much in the way of new issue premium.
We did a two-day roadshow, which was very well attended. The market is busy just now, but issuers are clearly prepared to do the work.
We didn’t feel the other activity distracted investors from our deal. There were a lot of new names for GTLK in the book.
Continental Europe 27%
Germany and Austria 17%
US offshore 5%
Asia and MENA 4%
Distribution by investor type
Asset managers/funds 59%
Banks/private banks 41%