Portugal opts for ‘daring’ pricing approach with new 10 year bond

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By Burhan Khadbai
08 Apr 2021

Portugal syndicated a new 10 year bond on Wednesday, and drew parallels to deals from Italy and Spain deals earlier in the year as it aimed for a small new issue premium and an high quality order book rather than one of colossal size. But in order to avoid huge drops in the book by slashing the spread, as Italy and Spain had done, Portugal began the price discovery process at a tight level.

Portugal was one of the first eurozone sovereigns out of the blocks following the Easter break.

On Monday, the sovereign mandated Barclays, BBVA, BNP Paribas, Caixabank and Crédit Agricole to lead the sale of a new October 2031 euro benchmark on Tuesday, with the books ...

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