Maturity: December 7, 2006
Issue/re-offer price: 99.512
Spread at re-offer: 27.1bp over the 7.5% December 2006 Gilt
Launched: Thursday August 15
Sole mgr: RBS
The short end has been very active over the past six to eight weeks and we have been looking for an opportunity to bring an issue. We decided to go with BNG and all we were waiting for was a little spread widening to make sure we had the right type of investor interest. This was coming from two places - Asia, where there are significant funds that will buy big chunks of triple-A sterling bonds, and the UK.
Swaps widened this week and we were able to get to a level they were happy with.
We had some serious lead interest and the deal was 70% done on the first day. The issue was swapped back to Euribor and RBS did that too.
It is re-offered at Gilts plus 27.1bp and is placing around that level.