Repsol hybrid priced at tight end of guidance but demand stutters

By Mike Turner
15 Mar 2021

Repsol, the Spanish oil company, brought a speculative grade rated hybrid capital bond on Monday but orders fell away towards the end of the execution process as debt bankers say investors are becoming more price-sensitive.

Repsol, rated Baa2/BBB/BBB but issuing hybrid debt at Ba1/BB+/BB+, opened books on a perpetual non-call six year (March 2027) trade at 2.875%.

The book reached €2bn, prompting guidance of 2.5%-2.625%.

By the time the €750m trade was priced at the tighter end of guidance, demand had dipped to €1.75bn — ...

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