Investors swoon to Belfius as supply scarcity feared

By Bill Thornhill
01 Feb 2021

Belfius Bank took advantage of a quiet market to issue a seven year senior preferred transaction on Monday which attracted exceptionally strong demand from bank treasuries buying for their liquidity portfolios, where demand competes with negative yielding covered bonds.

The deal was announced and order books were simultaneously opened on Monday for a €500m no grow senior preferred transaction that is rated A1/A-/A-. 

Joint leads were Belfius Bank, BNP Paribas, DZ Bank, Erste Bank and Morgan Stanley.

Initial guidance was set at 70bp over mid-swaps and, ...

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