Investors snap up thinly priced corporate debt as more stacks up

By Mike Turner
18 Feb 2021

Europe’s high grade bond investors showed they are still willing to swallow ultra-thin spreads this week, when Dutch leasing company LeasePlan priced a green bond well inside fair value and Deutsche Boerse won ample demand for a thinly priced €1bn deal.

LeasePlan, rated Baa1/BBB-/BBB+, opened books on a green February 2026 trade at 95bp over mid-swaps. 

This was about 18bp back from fair value, based on interpolating the curve from where leads spotted LeasePlan’s existing €500m 1.375% March 2024 and €500m 3.5% April 2025 green bonds. 

ING was green structuring agent. ...

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