Amount: Sfr100m lower tier two capital
Maturity: 14 June 2016
Issue price: 100.16
Coupon: 2.75% until 14 June 2011; three month Libor plus 57.5bp thereafter
Call option: at par from 14 June 2011
Launch date: Tuesday 9 May
Payment date: 14 June
Sole mgr: ABN Amro
This has almost gone, mainly thanks to a number of lead orders from asset managers. We had been working on the deal for some time, but we had to wait for the market to stabilise before executing launching at mid swaps plus 7.5bp. There is no direct competition with the Bank of America trade.
"...I don't see the rationale behind this deal. Why would anyone invest in this when a five year, senior unsecured Bank of America transaction with a better rating is available at the same spread?
This is not priced in the correct context with the market."