Province of Quebec

  • 15 Nov 2002
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Rating: A1/A+/AA-

Amount: C$200m

Maturity: November 29, 2007

Issue price: 101.34

Fixed re-offer price: 99.74

Coupon: 4.50%

Spread at re-offer: 27.5bp over the 4.5% September 2007 Canada

Launched: Friday November 8

Lead mgr: RBC CM

Market appraisal:

"...an interesting issue because Quebec has not done a Euro-C$ bond for more than five years. The pricing was probably a touch aggressive - it came 2bp through Quebec's domestic costs - which is not unrealistic compared to where other provinces issue relative to their domestic costs.

But Quebec's investor base is relatively small outside Canada because the political risk is always a drag on the name and certainly Quebec US dollar globals are 90% to 95% placed in the US.

We did some groundwork on the name in Europe and the response was not particularly enthusiastic although it was hard to tell before the new issue came out.

The province does a few euros every year to keep the name in front of accounts but the Canadian dollar market is different, even though it is the same investor base - so it will be interesting to see how well the bond is accepted.

It was certainly worth taking a chance, however, and we have participated in the syndicate. We sold half our ticket immediately to a UK account and we are happy to retail the rest.

The deal provides good funding for Quebec since they saved 2bp on their domestic funding costs, plus the underwriting commissions are cheaper in Europe than domestically."

"...this is quite interesting because Quebec hasn't been to this market for a while. The transaction came at 20bp over at full fees, which is in line with the Quebec spread.

This is an excellent credit and exactly the type of borrower most banks involved in this market would like to work with, particularly because it brings welcome diversification."

"...this issuer has not been to the market for well over five years. It is good to see Quebec back in the market, especially with such a well priced issue. There is strong demand from investors at present for highly rated provincial paper."

  • 15 Nov 2002

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%