Total Capital

  • 14 Oct 2004
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Guarantor: Total SA
Rating: Aa2/AA
Amount: NZ$100m
Maturity: October 27, 2014
Issue price: 101.375
Fixed re-offer price: 99.75
Coupon: 6.75%
Launched: Thursday October 14
Lead mgr: UBS

Bookrunner's comment:

The EIB 10 year transaction went well ? it has become expensive and is almost sold out ? and, as we continue to see good demand from private banks for 10 year Kiwi product, we were pleased to launch Total as a replacement.

In euros, dollars and sterling, demand is concentrated more on shorter maturities but in New Zealand, Aussie and Canadian dollars, we see demand for longer dates from our private bank and others.

Almost everyone invited took the syndicated amount and, for the first day, the issue went well.

Issuers like EIB, World Bank and Nestlé have become too expensive for clients and we no longer see demand for them. Total, however, pays Libor plus 30bp, which is an attractive level in the Kiwi market.

Market appraisal:

?...10 years would not have been my maturity of choice as the most popular area of demand for Kiwi. The curve is inverted and retail tend to be fairly conservative when it comes to maturity ? most of the interest we are seeing in Kiwis is between two and five years.

However, Total is a strong name and it is well known so no doubt it will get taken down quite successfully.?

?...an unusual trade being a 10 year for a corporate and led solely by UBS, which would indicate that there was some specific Swiss institutional lead order demand for the deal. I am sure the bulk of demand will be Swiss-based.

The Kiwi curve is flat and most issuance is concentrated in four or five years but Total is an interesting credit with crude oil being a strong story.

We had a small co-management position, which we accepted because Total is an interesting credit in an unusual tenor, and the pricing represents fair value.?

  • 14 Oct 2004

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%