Investors flock to ING Belgium’s covered bond

Flock 230
By Bill Thornhill
13 Feb 2020

A broad and diversified group of investors placed large orders for ING Belgium’s €1.25bn 10 year covered bond issued on Thursday, lapping up its positive reoffer yield and the convincing spread pick-up, as well as the rarity and strength of the name. The resounding response stood in contrast to two tightly priced negative yielding Pfandbriefe issued earlier this week.

After mandating leads on Wednesday, ING Belgium opened order books on Thursday with initial guidance of 9bp area over mid-swaps. At that level the deal offered a hefty 6bp pick-up over the issuer’s outstanding September 2026 and an alluring 8bp pick-up over the most recently issued Belgian 10 ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial