Deutsche Bahn turns screws on sterling spread

By Mike Turner
27 Jan 2021

Deutsche Bahn, the German state railway company, launched a £300m bond at a wafer thin spread on Wednesday, but investor demand still more than twice covered the deal.

Deutsche Bahn, rated Aa1/AA-, opened books on a sterling benchmark December 2026 (5.9 year) bond at 60bp over Gilts, about 11bp to 12bp outside fair value.

“This is one of the tightest spreads we’ve seen in sterling in a long time,” said a syndicate banker away from the trade ...

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