Amount: Sfr300m
Maturity: 27 January 2011
Issue price: 100.334
Fixed re-offer price: 99.809
Coupon: 1.125%
Spread at re-offer: 30bp over mid-swaps
Launched: Monday 26 January
Payment date: 27 February
Sole lead: UBS
Bookrunner’s comment:
We approached the issuer with the idea of a two year given BNG’s recent success and because we had found demand at the shorter end with all the recent three to six year supply, despite the very absolute yield levels.
We approached some accounts on Friday afternoon and some specifically asked for the 2011 maturity. We started at Sfr150m and were able to increase to Sfr300m, which was a great success especially as we were a sole lead in a difficult market.
The issuer is owned 50% by central government, 50% by local authorities so it’s half way between a financial and a semi-sovereign credit. This is why we could sell it at this level. The re-offer yield is 1.227%.
Market appraisal:
"... it went well — started at Sfr150m and went up to Sfr300m. The pricing looks okay if you compare it to BNG’s 2016."
"...less than two years at plus 30bp is a good level. The issuer is not as high quality as Cades but it is still triple-A."
