Swiss francs

  • 25 May 2000
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* Abbey National Treasury Services plc

Guarantor: Abbey National plc

Rating: Aa2/AA

Amount: Sfr50m (fungible with two issues totalling Sfr250 launched 11/05/00 and 17/05/00)

Maturity: June 19, 2002

Issue price: 100.29

Coupon: 4%

Launched: Thursday May 25

Lead mgr: UBS Warburg

* Bank Nederlandse Gemeenten

Rating: Aaa/AAA/AAA

Amount: Sfr200m

Maturity: July 5, 2010

Issue price: 100.25

Coupon: 4.5%

Launched: Wednesday May 24

Lead mgr: ABN Amro

Bookrunner's comment:

Discovering that there was a demand for 10 year paper, mostly from institutional investors, we quickly prepared and launched the deal. We were helped by our excellent placement on a lead order basis and were surprised that the syndicate members had also found a demand for the paper.

The swap opportunity meant we were able to bring triple-A rated BNG quite cheaply and this obviously paved the way for the outstanding level of sales we have achieved. The syndicate took the paper at Libid minus 4bp and it is now trading between 7bp and 8bp below, levels that are comparable to the Statkraft paper at 9bp below. We were also particularly pleased that CSFB and UBS Warburg as well as the Kantonalbanks decided to take positions on the deal.

Market appraisal:

"...fairly priced yielding 4.56% for co-leads and should enable it to sell over time, thanks to its 4.5% coupon. The deal was launched late yesterday afternoon and we have not seen much demand so far, so it is difficult to see if the market has taken to it. We have not yet placed our Sfr3m ticket.

Syndication seems to have gone well for the lead manager and the big names are all involved. The performance of this transaction will depend ultimately on whether investors are looking for spread or liquidity."

"...the deal went quite well and we were a little astonished at the strong market reception. We had a small ticket, which we sold this morning (Thursday) and we have not seen any more demand for the paper since then. A few syndicate members have apparently been buying heavily and the leads have also sold a lot of papers so evidently there is excellent demand for this transaction from certain quarters.

We did not expect to see a deal in the 10 year sector as the yield curve is fairly flat at the moment. However, the paper was nicely priced and certainly not expensive for BNG, with a yield of 4.57%, equivalent to 9bp below swap mid and 13bp below Libor.

There is still the opportunity to sell domestic paper but on the foreign side investors are showing more caution. The market is difficult and the most successful deals have been the short term offerings for Abbey and Rheinhyp."

"...demand has been spotty so far. This is not the best maturity from an investor perspective and it will take time to sell the paper. There is not really room for two deals in the market and while BNG looks cheap at 5bp below swap bid it is not the best value in the context of the market. PSK was launched recently in the same maturity and although that paper was 4bp more expensive than BNG it carried the extra weight of an explicit government guarantee."

* Kommunalbanken A/S

Rating: Aaa/AAA

Amount: Sfr200m

Maturity: December 22, 2004

Issue price: 100.60

Coupon: 4.25%

Launched: Tuesday May 23

Lead mgr: Bank von Ernst

Bookrunner's comment:

This transaction has gone well so far. Priced to yield 4.25% at re-offer, the level was seen as fair by the market, although we were buying back a lot of paper to support the issue this afternoon (Tuesday).

Syndication went well and was broader than on previous transactions for the borrower, although there were a few declines including one of the big two. The 4-1/2 year maturity was the borrower's preference and matched the bulk of investor demand.

Institutional flows have been fairly small due to general expectation of further rate rises, but retail demand is still fair, albeit for small amounts.

Market appraisal:

"...an interesting deal. Only highly rated borrowers have tapped the difficult market in recent weeks and the feedback from our sales team on this offering has been pretty positive. Yielding 4.24% at re-offer the paper was fairly priced, but Swiss bonds are now facing competition from equity and from euro denominated paper for space in many portfolios."

"...fairly priced for the credit at 5bp or 6bp below the swap bid rate, but the problem is that investors are not totally sure what the borrower does. This deal is aimed more at a professional audience than to the retail sector and while demand has been patchy so far we expect to sell our paper over time."

"...not a bad spread and retail investors will also like the maturity. The paper yielded 4.24% at co-lead levels and clients bought it at around Libid minus 8bp. The triple-A rated borrower is a former state bank and even without an explicit guarantee it is still extremely well respected in the market.

This deal was launched into a favourable climate and there is little activity in the primary and secondary markets. The Swiss National Bank tender today (Wednesday) might lead to greater activity in the coming weeks."

Domestic issuance:

* Hero Lenzburg

Amount: Sfr200m

Maturity: July 4, 2005

Issue price: 101.15

Coupon: 5%

Launched: Thursday May 25

Lead mgr: Credit Suisse First Boston

Bookrunner's comment:

We are pretty satisfied with this transaction. Hero has been in the pipeline for quite a while, but once we were awarded the mandate we spent two weeks researching the credit and began the official marketing two days ago.

The borrower is an extremely well known brand name in Switzerland and we are anticipating good consistent sales. The spread was rather ambitious, but we have already firmly placed 75% to 80% of our paper, which shows that the launch levels were tight but realistic.

We sold the bonds at a yield of 4.81%, equivalent to 41bp over the swap mid-rate or 85bp over governments. We achieved broad distribution to bond and pension funds as well as institutional accounts. We have even sold a little to retail, although the bulk of demand from this sector will appear a little further down the track.

This week's offerings have demonstrated that both supply and demand are present in the market. However there is enough paper available for now and issuance should be light next week, especially with the public holidays.

Market appraisal:

"...this deal was launched after three or four weeks of speculation in the market. Retail interest should be strong once the deal reaches those investors in a couple of days and we have already found decent demand from funds so we are fairly confident of placing our Sfr5m ticket.

The 5% coupon is attractively high. The paper yielded more than 4.8% at issue price and this will play a large part in winning support for the deal among investors. However, the transaction is not quite so appealing in spread terms. CSFB first offered the bonds at 35bp over the swap offer rate or 88bp over governments and we felt that these levels were not as generous as they might have been given the novelty of the borrower. That said, the lead manager pre-placed a lot of its paper and the response to this deal has evidently been strong even at these levels."

"...we took twice our normal 10% ticket on this transaction and sales have gone pretty well so far. Around two thirds of our paper has been placed in a fund and internally with portfolio managers. Banks stepped in for a further 10% to 15% while sales to institutional clients have amounted to around 10%. We have also sold a few smaller tickets to retail accounts.

The deal was fairly priced at about 90bp over governments and the size was right to appeal to a wide range of investors. However, opinions are divided on the company and this offering was met with mixed feelings by investors. The 5% coupon has certainly found favour in the market but many investors were unimpressed by the high price set by the lead manager."

* Holderbank Financière Glarus AG

Amount: Sfr500m

Maturity: June 22, 2005

Issue price: 100.25

Coupon: 4.5%

Launched: Tuesday May 23

Lead mgr: Credit Suisse First Boston

Bookrunner's comment:

All in all we are pleased with this deal. It is not that easy to find demand for corporate paper, but while we have not yet sold out we have placed a sizeable chunk on the first day. As on previous transactions we are anticipating good demand for the next two to three weeks.

The yield curve is fairly flat at the moment with only a 50bp differential between the two and 10 year tenors. The 4.5% coupon was crucial to ensure demand and the yield of 4.57% at issue price made the deal fairly popular. However at 62bp over governments and 20bp over the swap mid-rate pricing was seen as a little aggressive.

Syndication was successful as banks acknowledged the strengths of this deal which could become a benchmark bond given the relative scarcity of corporate transactions of this magnitude. The borrower is considered to be roughly double-A and is well known in the market. Demand so far has been mainly institutional and we have sold our paper to a range of medium-sized pension funds, banks and asset managers.

Market appraisal:

"...at the tight end of the pricing range. There is still domestic demand and the market is fairly regular but this is probably the only reason this deal will sell at such aggressive levels. Nevertheless it will take time to sell all the paper and the lead manager in particular will probably be left with a lot on its books for a while."

"...quite aggressively priced as a result of the competitive bidding, but demand is certainly there for the paper. After launch yesterday the leads and co-leads were offering the bonds at full fees and we found it difficult to sell our paper but placement has been better earlier in the week.

Investors are keen on paper in this maturity while the size of the transaction makes it fairly liquid and therefore more attractive. Although Holderbank is not officially rated, it is generally seen as a single-A credit and its familiarity to investors will also have benefited placement."

  • 25 May 2000

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%