Royal Mail wins massive book, cuts spread by 20%
The UK’s Royal Mail obtained chunky orders for a seven year euro bond issue on Tuesday, bringing home to bankers how much money is still in the system, despite the heavy issuance of corporate debt in the past month.
Royal Mail, rated BBB by S&P, launched an expected €500m bond first thing in the morning, at initial price thoughts of 200bp over mid-swaps.
BNP Paribas, ING, NatWest and UniCredit ran the trade. It drew strong demand: books swelled to more than €3.4bn in three hours."It doesn't fall naturally ...