The Federal State of Berlin chopped 2bp off the spread offered for its €500m 2039 bond during execution on Wednesday, as SSA investors remain hungry for long duration debt.
Berlin, rated Aa1/AAA/AAA, started marketing its no-grow trade at mid-swaps plus 4bp area, before launching the deal at 2bp over.
Demand was more than €1bn by the time the spread was set.
BayernLB, Deutsche Bank, HSBC, LBBW and TD Securities were mandated to arrange the transaction.
Long duration euro demand has