Euros

  • 05 Nov 1999
Email a colleague
Request a PDF
n Fiat Finance & Trade Ltd SA

Guarantor: Fiat SpA

Rating: A3

Amount: Eu200m (fungible with Eu500m issue launched 20/10/99)

Maturity: November 12, 2002

Issue price: 100.675

Fixed re-offer price: 100.50

Coupon: 5%

Spread at re-offer: 60bp over the 4.5% August 2002 Bobl

Launched: Wednesday November 3

Joint books: Merrill Lynch, JP Morgan, UniCredito

n IKB International SA

Guarantor: IKB Deutsche Industriebank

Rating: A (Fitch IBCA)

Amount: Eu100m tier 1 capital

Maturity: November 17, 2009

Issue/fixed re-offer price: 100.00

Coupon: 7.95%

Spread at re-offer: 280bp over the 4.5% July 2009 Bund

Launched: Thursday

November 4

Sole mgr: Salomon Smith Barney

Bookrunner's comment:

We have been working on structuring the issue for a couple of weeks. IKB has used the German dated tier 1 version of debt in terms of having a 10 year final maturity and thereby a more competitive price and potentially a broader audience for its paper.

IKB is not exceptionally well known but it is a very solid credit and we and the issuer provided credit research which explained how the institution serves the domestic Mittelstand (middle market companies).

IKB has reinforced ownership in the sense that it is 20% owned by Allianz and these reference points combined to give investors a favourable view of the credit.

We achieved a fairly broad placement among insurance companies and investment advisers, and distribution was pan-European.

The bid in IKB's domestic market was naturally very strong but we ultimately managed a split of 55% Germany, 45% international - spread across France, the Benelux, Switzerland and Austria.

n John Hancock Global Funding Ltd

Rating: AA+

Amount: Eu300m

Maturity: November 30, 2004

Issue price: 101.28

Fixed re-offer price: 99.68

Coupon: 5.25%

Spread at re-offer: 60bp over the 3.5% July 2004 BTAN

Launched: Tuesday November 2

Lead mgr: Warburg Dillon Read

Secured on: a funding agreement originated by John Hancock Mutual Life Insurance Co

Bookrunner's comment:

We were very pleased to bring a successful deal in euros for this popular GIC-backed borrower.

The John Hancock name is familiar to our investors through deals we have done for them in the dollar market and certainly the name is known to our Swiss retail network through the Swiss franc market as well.

The five year maturity is an area where we have seen constant retail demand and the 5.25% coupon is expected to create a lot of retail demand for this bond going forward.

Having said that, institutional demand on the first day was very strong and geographically quite diverse, which was particularly encouraging. Switzerland was obviously an important part of the first day distribution but France probably accounted for about 50%, Germany for about 20% to 25% and Scandinavia, Italy and Spain were also involved.

In terms of pricing, the main comparison was the existing euro issue for John Hancock, the 2006, which was trading around 26bp/28bp over swaps. This new issue came at about the same level. The other pricing point for investors was Hancock's five year dollar deal which was trading at a similar Libor margin.

The deal has closed yesterday (Thursday) at 58bp/57bp.

Market appraisal:

"...we had a relatively small ticket of Eu3m and placed it easily. We saw some Swiss buying and also found a little demand in France. We have bought some more paper as we expect retail buying to continue.

The pricing is in line with what is needed to attract retail, but not enough for institutions - which will also be put off by the size."

"...60bp over is a nice spread for a AA+ name and we sold our ticket easily to two accounts. Even if John Hancock is not the most familiar of names and this is a funding agreement backed issue, the spread is high enough and the structure and name are becoming better known. The buyers were smaller institutions as the issue size was not very big."

"...the deal has attracted reasonable support, especially from Swiss accounts which are familiar with the name. The pricing is in line with other Hancock paper in the dollar and euro sectors and investors appreciate the reasonable spread paid by this decent double-A issuer.

A lot of the recent deals for GIC issuers, particularly Aegon in dollars, are retailing well and the Hancock issue should sell to a similar audience over time."

Euro Jumbo Pfandbriefe:

n Bayerische Hypo- und Vereinsbank

Rating: Aaa/AAA

Amount: Eu128m (fungible with two issues totalling Eu1.022bn launched 18/02/98) Öffentlicher Pfandbrief series 706

Maturity: December 9, 2003

Issue price: 98.815

Fixed re-offer price: 98.66

Coupon: 4.5%

Spread at re-offer: 17.5bp over the November 2003 Treuhand

Launched: Tuesday November 2

Joint leads: HypoVereinsbank (books), CDC, Commerzbank, Deutsche, Dresdner KB, Goldman Sachs, WestLB

n Deutsche

Siedlungs- und Landesrentenbank

Rating: Aaa/AAA/AAA (Moody's/S&P/Fitch IBCA)

Amount: Eu250m (fungible with Eu1bn issue launched 31/03/99) Öffentlicher Pfandbrief series 635

Maturity: December 16, 2002

Issue price: 95.7875

Fixed re-offer price: 95.65

Coupon: 3%

Spread at re-offer: 17bp over the 5% November 2002 Bobl 25

Launched: Wednesday November 3

Sole mgr: Deutsche

n Rheinboden Hypothekenbank

Rating: AAA

Amount: Eu500m (fungible with four issues totalling Eu900m launched 13/08/98, 04/12/98, 04/05/99 and 31/08/99) Öffentlicher Pfandbrief series 955

Maturity: August 24, 2012

Issue price: 94.385

Fixed re-offer price: 94.20

Coupon: 5%

Spread at re-offer: 52bp over the 5.375% January 2010 Bund

Launched: Wednesday November 3

Joint books: ABN Amro, BGB, Commerzbank, Deutsche, Dresdner KB, HypoVereinsbank

n Westdeutsche Landesbank Girozentrale

Rating: AAA/AAA (S&P/Fitch IBCA)

Amount: Eu477m (fungible with three issues totalling Eu1.03bn launched 06/10/98, 17/02/98 and 24/06/98) Öffentlicher Pfandbrief series 7505

Maturity: February 8, 2008

Issue price: 99.365

Fixed re-offer price: 99.16

Coupon: 5.25%

Spread at re-offer: 25bp over the 5.25% January 2008 Bund

Launched: Wednesday November 3

Joint books: Balaba, CDC, Commerzbank, Deutsche, DGZ Deka, Helaba, HypoVereinsbank, LBW, SachsenLB, WestLB

  • 05 Nov 1999

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%