Sovcombank printed a tier two bond on Monday at the wide end of guidance and the lowest end of the expected size range, which an investor said was a sign that the deal was “struggling” over the line. But a lead manager on the note pointed to healthy trading on Tuesday and its debut status and said that the issuer had simply taken sensible decisions after an in-depth price discovery process.
Sovcombank sold $300m of 8% April 2030s at par to give a spread of 644.5bp over US Treasuries. The notes are callable in April 2025. If the issuer does not call them, they will pay 642.7bp over Treasuries.
There is also a write-down feature on the bonds which