Transnet pays no extra credit spread for curve extension

23 Jul 2012

South African freight transport company Transnet sold $1bn of 4% 2022 bonds last Thursday, paying no additional pick-up over Treasuries for extending its curve by six years. But tight pricing and weaker market conditions since the launch have not prevented the bond from trading up — to as high as 100.2 on Friday. On Monday it was lower but still strong at 99.25-99.5, having been printed at 98.855.

JP Morgan and Standard Bank arranged the note, which is rated A3 by Moody’s.

Before this deal, Transnet had only one outstanding bond — a $750m 2016 it sold last year. That note was trading around 270bp-275bp over US Treasuries last Wednesday, though had rallied to 260bp-265bp over by ...

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