Yield hunters swoop on Caixabank’s AT1

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By Bill Thornhill
01 Oct 2020

Caixabank’s attracted exceptionally strong demand for its additional tier one (AT1) transaction on Thursday, which was set to be priced flat to fair value. The deal suggested a clear vote of confidence in the credit, following its recent merger, and underscored investors’ unremitting search for bonds that offer a juicy yield.

CaixaBank, which is rated Baa1/BBB+/BBB+, opened order books on Thursday for a €750m no grow perpetual non-call April 2028 AT1 with initial price guidance of 6.375%.

Barclays, Bank of America, Caixabank, Morgan Stanley and Société Générale were the joint lead managers.

The transaction’s first coupon reset date is April ...

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