Amount: Eu200m lower tier two capital
Maturity: 31 May 2016
Issue price: 99.86
Coupon: three month Euribor plus 25bp
Call option: at par from 31 May 2011
Spread at re-offer: three month Euribor plus 28bp
Launch date: Wednesday 17 May
Payment date: 31 May
Joint books: HSBC, Sampo Bank
This is a well rated name at A2 in subordinated format. Two transactions for Sabadell and Britannia priced recently at 32bp and 31bp respectively. Sabadell was going for size while Britannia was small. Sampo is one notch better rated and we knew the deal had the potential to go through the 30bp level.
However, we went out with guidance of 28bp to 30bp in order to take into account the recent supply. The book came together quickly and we had a Eu300m book in three hours at 28bp over. This is where we priced the deal.
Italy bought over half of the issue. The rest was taken up by the UK, Greece and Germany.