Maturity: April 24, 2013
Issue price: 101.49
Fixed re-offer price: 99.815
Launched: Wednesday April 2
Lead mgr: Deutsche Bank
This transaction came about as a result of a reverse enquiry. We put together various options and this particular deal was the most attractive.
With a yield of over 5% and coming at 33bp over govvies - which equates to 90bp over the euro government curve - it is very attractive. We felt there was good demand for a new issue and the success of the deal is proof of that.
Dekabank has been in the Swedish krona market before with successful issues such as the February 2007 issue.
This name goes down well with retail investors.
"...there are a lot of redemptions in this currency and these new issues give investors the opportunity to reinvest. The Swedish krona is close to the euro so there is little currency risk. There is little demand in this market, but of what there is will be reinvestment flows.
DekaBank is becoming well known in the Benelux as well as Germany so the bonds will sell well there."
"...the response from our clients is that the maturity is too long - it is difficult to predict the level or rates and they prefer to stick to the five to seven year tenor.
Also DekaBank is not well recognised outside Germany and of the two deals launched this week, we think our clients will prefer Dexia, despite the lower coupon."