Deutsche Telekom International Finance BV

  • 13 Jul 2006
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Guarantor: Deutsche Telekom AG
Rating: A3/A-/A-
Amount: £250m
Maturity: 19 July 2013
Issue/re-offer price: 99.496
Coupon: 5.625
Spread at re-offer: 98bp over the 5% September 2014 Gilt
Launch date: Thursday 13 July
Payment date: 19 July
Joint books: BNP Paribas, Royal Bank of Scotland

Bookrunners' comment:

The deal was fine, although we launched in what were tricky market conditions and rumours that other telcos are looking at the sterling market, however much unfounded, diverted investors' attention away from the trade and did not help the deal.

We achieved a quality book, and although the deal was not fully subscribed, we would expect the transaction to sell down over time.

Guidance was brought at 98bp-100bp over and we priced at the tight end, proving that there was no price sensitivity in the market. The name does not really trade, but we are offering our residual position at 98bp over.

The price level was set in the context of the secondary market. The outstanding 2014s were at 98 bid when this trade was announced — we thought that offering this at the same level, but coming a year inside, was the correct level.

Market appraisal:

"...will they ever learn? Among investors, and frankly investment bankers, they are the most disliked issuer in the market.

You have to question their strategy. It came at 98bp because that was the all-in level, but have not spoken to a single investor that took bonds."

"...what is the point of DT continually doing trades like this? The floater they did a few weeks ago bombed and so has this. I think they are trying to do quiet MTN trades that they think people won't notice, but that is not the case.

It was far, far too tight and at the same time they have contributed yet further to destroying the curve."

  • 13 Jul 2006

All International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 92.59 388 8.96%
2 Citi 85.30 278 8.25%
3 BofA Securities 63.15 265 6.11%
4 Barclays 58.01 223 5.61%
5 Deutsche Bank 55.74 184 5.39%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 60.87 123 14.06%
2 Credit Agricole CIB 28.59 93 6.60%
3 Santander 25.41 90 5.87%
4 JPMorgan 23.88 61 5.52%
5 UniCredit 21.51 103 4.97%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 2.07 11 10.42%
2 BofA Securities 1.40 6 7.01%
3 Citi 1.37 7 6.87%
4 Morgan Stanley 1.36 6 6.85%
5 JPMorgan 1.31 7 6.59%