Deutsche Bahn turns screws on sterling spread

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 ...Already a subscriber? Login