Slovenia garners wide support for Eu450m 10 year issue

JP Morgan and UBS Warburg today (Monday) launched a Eu450m 10 year deal for the Republic of Slovenia, which according to the leads enjoyed a substantially oversubscribed book, but which could not be increased beyond the final amount because of a strict limit on borrowing laid down by the issuer.

  • 30 Mar 2001
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"We had 107 orders totalling Eu900m for this issue at the quoted price," said Jonathan Brown, head of emerging market syndicate at JP Morgan. "We would have loved to have done something as large as Eu600m-Eu700m if we had been allowed."

The bond pays a coupon of 5.375% and was priced at 98.438 to give a spread of 35.8bp over mid-swaps, equivalent to 89bp over Bunds. When free to trade, the new issue tightened to 34bp over swaps, 3bp inside the 2010 bond Slovenia issued last year.

The transaction was priced wider than the high 20s indicated at the time the mandate was awarded, said one banker in the syndicate, but he added that this was a result of the paper of EU first wave candidates widening around 7bp from the tight levels seen in recent weeks.

Otherwise, the consensus among bankers at the seven co-managers was that the pricing was about right. However, none of the group received any bonds because the leads used the pot system.

According to JP Morgan's Brown, the large book allowed the leads them to skew distribution away from the German and Austrian banks that were the mainstay of Slovenia's last deal.

Of the 13 countries involved, Germany took 26% of the paper, the UK 17%, Switzerland 16%, Austria 10%, the Netherlands 9%, Scandinavia 2%, and Luxembourg, Italy and France took 4% each.

Fund managers took the majority of sales among investor types, with 53%, while banks took 17%, insurance funds 12%, retail 11%, and pension funds 7%.

Slovenia is not a member of the OECD, meaning that the country does not benefit from the zero risk weighting that makes Polish, Hungarian and Slovak paper attractive to banks. However, Slovenia hoped to benefit from the proposed changes to risk weightings under Basle II, being the highest rated of EU first wave applicants at A2/A/A.

The sovereign was able to achieve funding tighter than other first wave EU applicants, its new issue coming 1bp tighter on a Euribor basis than the trading level of Poland's 2011 paper.

  • 30 Mar 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 241,977.38 927 8.19%
2 JPMorgan 223,817.40 997 7.58%
3 Bank of America Merrill Lynch 216,160.55 723 7.32%
4 Barclays 185,098.93 672 6.27%
5 Goldman Sachs 158,991.47 518 5.38%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 32,522.19 61 6.54%
2 BNP Paribas 32,284.10 130 6.49%
3 UniCredit 26,992.47 123 5.43%
4 SG Corporate & Investment Banking 26,569.73 97 5.34%
5 Credit Agricole CIB 23,807.36 111 4.79%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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1 Goldman Sachs 10,167.68 46 8.81%
2 JPMorgan 9,894.90 42 8.58%
3 Citi 8,202.25 45 7.11%
4 UBS 6,098.17 23 5.29%
5 Credit Suisse 5,236.02 28 4.54%