Enagás pays 5bp premium as CSPP warps curves

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By Mike Turner
27 Oct 2020

Enagás, the Spanish gas transmission and network company, came to the bond market for a rare trade on Tuesday, as European Central Bank bond buying continues to make syndicate bankers' lives difficult by taking spreads in strange directions.

Enagás, rated BBB+/A-, opened books on a €500m no-grow November 2032 trade at 80bp over mid-swaps.

“We called [fair value] 55bp”, said a lead manager.

However, defining fair value is difficult with an illiquid, infrequent issuer. Enagás has a flat curve between its €600m 1.25% February 2025 and €750m 1.375% ...

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