Guarantor: Deutsche Bank AG
Rating: Aa3/AA
Amount: Sfr100m (fungible with two issues totalling Sfr1bn launched 29/04/98 and 17/06/98)
Maturity: May 29, 2008
Issue price: 99.94
Coupon: 3.5%
Launched: Wednesday June 6
Joint books: Credit Suisse First Boston, Deutsche Bank
* LGT Finance Ltd
Guarantor: LGT Bank in Liechtenstein
Rating: Aa3/AA-
Amount: Sfr250m (fungible with Sfr150m issue launched 28/04/99)
Maturity: June 2, 2006
Issue price: 97.05
Coupon: 2.75%
Launched: Tuesday June 5
Joint leads: UBS Warburg (books), Zürcher Kantonalbank
Bookrunner's comment:
The borrower had expressed a desire to raise funds through the bond markets and having seen some demand, we felt that a tap of the existing transaction was the best option.
LGT is a well known credit in Switzerland and the intermediate maturity was exactly what investors were after. This deal also satisfied the demand for discount bonds that emerges from time to time. Investors will also have warmed to the added liquidity of the deal, which now totals Sfr400m, and that should attract institutional support.
The pricing was fair for the rating and compares well against outstanding comparables, while the cosmetics were ideal to attract both retail and institutional demand. So far, we have seen appetite from funds and retail buyers and we expect the retail flows to continue.
Market appraisal:
"...nothing special. We took a small ticket and that will be sold over time, but for now the market is fairly calm and we have not seen much demand. Primary market activity has slowed, although there is still steady trading in intermediate paper on the secondary market."
* Pfandbriefstelle der Oesterreichischen Landes- und Hypothekenbank
Rating: Aaa
Amount: Sfr50m (increase to Sfr300m issue launched 31/05/01)
Maturity: June 27, 2003
Issue price: 100.04
Coupon: three month Libor flat
Launched: Thursday June 7
Sole mgr: Credit Suisse First Boston
* Swiss Re America Holding Corp
Guarantor: Swiss Reinsurance Co
Rating: Aaa/AAA
Amount: Sfr150m
Maturity: June 29, 2015
Issue price: 101.25
Coupon: 4%
Launched: Thursday June 7
Lead mgr: Zürcher Kantonalbank
Bookrunner's comment:
Since launch this (Thursday) morning, this deal has exceeded expectations. Swiss Re had been keen on a maturity in the 13-15 year area, so we opted for 14 years. While that is obviously an unusual maturity in the Swiss market, the modest size of the offering made it a realistic sell.
Swiss Re is a credit that offers investors a good opportunity to diversify away from the more common borrowers and that has spurred demand. What is more, being launched by Swiss Re America means that it is also the only paper for this borrower in the Swiss foreign market.
