Siemens stays fixed for two years as floating rate notes still out of favour

Siemens logo on cloth from Adobe 12Feb20 575x375
By Mike Turner
27 May 2020

Siemens, the German machinery maker, found plenty of demand for a multi-tranche bond issue on Wednesday, though the inclusion of a two year fixed portion strongly suggests that floating rate notes have become unpopular among corporate issuers.

Siemens, rated A1/A+, opened books for the €1.5bn June 2022 tranche at 85bp over mid-swaps, before tightening it to guidance of 60bp and pricing at 50bp over from a €5.5bn book.

BNP Paribas, Citigroup, ING, JP Morgan, Mizuho and Santander ran the deal.

The two year maturity has been a ...

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