Safety in Switzerland as EBN defies volatility

29 Apr 2010

The Swiss franc bond market lived up to its reputation for stability this week as Energie Beheer Nederland cut a path through a turbulent market to issue a Sfr325m ten year bond on Wednesday. Bookrunners Deutsche Bank, Royal Bank of Scotland and UBS priced the issue at the guidance level of 10bp through mid-swaps, despite a 5bp drop in the Swiss franc swap rate at the close of business on Tuesday.

"We pre-marketed the issue on Tuesday and we were ready to go the following morning," said a syndicate banker on the deal. "But the situation changed drastically overnight with the Greek and Portuguese downgrades. We rang around, reconfirmed the orders and felt we had enough support from investors ...

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