Euro FRNs

  • 17 Mar 2000
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* Banca Agrileasing SpA

Rating: A-/A- (S&P/Fitch IBCA)

Amount: Eu200m

Maturity: March 31, 2003

Issue/fixed re-offer price: 99.915

Coupon: three month Euribor plus 25bp

Spread at re-offer: Euribor plus 28bp

Launched: Wednesday March 15

Joint books: Commerzbank, Mediobanca

Bookrunners' comments:

Commerzbank - Banca Agrileasing is part of the co-operative banking group BCC, which is a 570-strong collection of Italian banks. The bank was founded in 1977 to do small ticket leasing for co-operative clients.

The bank offers three types of leases for equipment, vehicles and real estate. Previously its business was more in southern Italy, with farmers major clients, but it now operates more in the north. In the north, its clients are artisans running small companies, which are a better credit risk.

Agrileasing became a bank in 1999 to make it easier to raise funding and it is regulated by the Bank of Italy. The bank therefore operates under strict guidelines on asset and liability management, with strong regulations on matching the two. The bank is 71.3% owned by Iccrea and a major factor in the bank's ratings is the ownership structure and the structure of BCC.

The bank is a heavy user of new technology in its business, using an intranet through around 200 branches to offer lease quotes on-line. Through its expert systems the bank maintains a stringent lease profile and its bad debts are less than 1.4% in total.

This transaction is the inaugural deal off the borrower's MTN programme, which was signed last week. The idea was to bring an issue that would stand out from many of the Italian bank all-in trades we have seen and that would clear at the re-offer.

That has been the case, with all sales made at the re-offer of Euribor plus 28bp. We sold mainly to Germany, the UK and Italy, the three centres where we held roadshows.

* Banca Carige SpA -Cassa di Risparmio di Genova e Imperia

Rating: A2/A-/A

Amount: Eu300m

Maturity: March 29, 2005

Issue/fixed re-offer price: 99.693

Coupon: three month Euribor plus 15bp

All-in spread: Euribor plus 25bp

Launched: Monday March 13

Joint books: Warburg Dillon Read, WestLB

Bookrunners' comments:

Warburg - Banca Carige is the premier retail financial services provider in the north-western Italian region of Liguria with a market share of over 25%.

At the end of 1998, its total assets amounted to around Eu10bn. It is rated A2 by Moody's and its A- rating from S&P has been put on review for an upgrade following the announcement that it is to merge with the Cardina Banca Group.

This deal sold easily inside fees, with many investors looking for single-A credits offering a decent yield.

Carige has issued in the past and therefore credit lines were not a problem. Consequently ourselves and WestLB were able to put the deal together in a relatively short period of time.

The issue now (Thursday pm) trades at 23bp/24bp over Euribor.

WestLB - Banca Carige is Italy's fifth largest savings bank and we were pleased to team up with Warburg Dillon Read to launch its second public euro issue.

The aim of the deal was to introduce a pan-European customer base to a name that has traditionally been sold only to Italian customers. We therefore launched the transaction following a week of premarketing, which enabled customers who were not familiar with Banca Carige to research the credit.

We priced the deal at an all-in of Euribor plus 25bp, which was in line with outstanding Italian bank credits. Although we had expected that with plenty of lines available outside Italy there would be good demand for this transaction, we were actually able to sell all our bonds within the week.

Demand was widespread, with Germany, Austria and France featuring in our distribution. Banca Carige took some time in preparing the transaction and the success of the deal shows that this diligence was worthwhile.

Market appraisal:

"...we have a lot of demand from Italian investors for Italian bank FRNs. The Carige name is well known here and it was quite simple for us to place our reasonably large stake in the deal a couple of basis points within fees."

* Bayerische Handelsbank AG

Rating: AAA

Amount: Eu500m Öffentlicher Pfandbrief series 1209

Maturity: April 5, 2005

Issue/fixed re-offer price: 100.04

Coupon: three month Euribor flat

Launched: Wednesday March 15

Joint books: Commerzbank, Dresdner Kleinwort Benson

Bookrunner's comment:

Commerzbank - We distributed this transaction to banks, savings banks and central banks, mostly in Germany and Switzerland. The deal was priced with an all-in of Euribor plus 2.4bp and cleared at between plus 1.8bp and plus 2bp.

Market appraisal:

"...a five year Pfandbrief floater at an all-in of Euribor plus 2.4bp is pretty much in line with the market and this will clear quite easily.

This is run-of-the-mill stuff, only slightly more interesting than normal because compared to some of its peers, Bayerische Handelsbank is not in the market too often. Some investors may therefore see the deal as more attractive because of its rarity value."

* Jyske Bank A/S

Amount: Eu100m upper tier 2 debt

Maturity: March 29, 2008

Issue/fixed re-offer price: 99.596

Coupon: three month Euribor plus 80bp until 29/03/05; three month Euribor plus 230bp thereafter

Call option: at par on 29/03/05

Launched: Thursday March 16

Lead mgr: Chase Manhattan

Bookrunner's comment:

This is Jyske Bank's debut public debt issue and it has gone extremely well. The bank's senior debt rating was upgraded from A2 to A1 in December.

During the week there were investor meetings with clients in Europe and Jyske Bank's work really paid off as we could sell all the paper on the day of launch and achieve broad distribution.

About 25% of the deal went to Scandinavia, 20% to Germany, 30% to the Benelux, 10% to the UK and 15% to southern Europe.

The issue was re-offered at Euribor plus 89bp. That was 16bp back from the Unibank May 2008 deal and 11bp inside the BG Bank April 2007 issue. The deal is now trading re-offer bid and we are delighted with the transaction.

* Nationwide Building Society

Rating: A1/A+

Amount: Eu500m

Maturity: March 27, 2003

Issue/fixed re-offer price: 99.968

Coupon: three month Euribor plus 10bp

Launched: Wednesday March 15

Joint books: ABN Amro, SG

Bookrunners' comments:

ABN Amro - We worked on this transaction for a couple of days ahead of launch and were able to build a nice pan-European orderbook. The goal of the borrower was to reach a wider investor base and we achieved that.

We sold bonds into Austria, the Benelux, Portugal, France and Scandinavia, in addition to the German and UK buyers that have supported Nationwide in the past.

We were oversubscribed at Euribor plus 14bp, the level at which we marketed the transaction, and overall the issue can be seen as a success. We are running a slight short position and the deal is plus 14bp bid, plus 12bp offered.

SG - As the largest UK building society and a leading player in the UK mortgage market, Nationwide is a name that is well known in its home country. The borrower also enjoys good sponsorship in Germany, but the aim of this transaction was to target a broader pan-European investor base.

By this measure the deal has gone very well. The issue gained momentum during the premarketing and bookbuilding period and that ensured we could reach the targeted audience.

The main regions of distribution were France, the Benelux and Spain, but we also sold some paper to the traditional areas of the UK and Germany.

The credit was well appreciated by the buyers as it is a rare issuer in the euro FRN market. This was reflected in the quality of the orderbook we put together and in the fact that we could preplace our entire allocation.

The all-in was Euribor plus 15.5bp and we made sales at plus 14bp. The deal is now being bid away from us in the market at plus 14bp and given the momentum and followthrough buying we are seeing it has the potential for spread performance.

Market appraisal:

"...looked OK, even if like most floaters you couldn't make a lot of money on it. We had Eu5m and could sell that, but it took a bit of work. One thing that did help was that the relatively large issue size was seen as a plus."

"...a very nicely priced FRN for a rare UK building society issuing in the euro sector. It made a welcome change from the constant flood of Italian bank paper we are seeing at the moment. We sold our paper at around the Euribor plus 14bp level, well inside the all-in of plus 15.5bp."

* Rheinische Hypothekenbank AG

Rating: Aa3/AA-

Amount: Eu500m

Maturity: March 15, 2005

Issue/fixed re-offer price: 99.967

Coupon: three month Euribor plus 10bp

Launched: Monday March 13

Joint books: Commerzbank, Morgan Stanley Dean Witter

Bookrunners' comments:

Commerzbank - This transaction was well received. The pricing was seen as fair and we sold the paper around 1bp inside fees. The paper was sold mostly in Germany and Switzerland. Along with commercial bank buyers we had some central banks involved.

MSDW - There has been very little five year double-A euro FRN supply lately, but we launched this transaction as we have seen demand for the product.

A number of bank investors have been moving out of 100% risk weighted paper into 20% risk weighted paper as they are under pressure to boost their returns on equity and this is targeted at those accounts.

We approached Rheinhyp with the idea and launched the issue for the mortgage bank - rather than for its Irish unit that has a split rating.

We sold all the paper in about 10 minutes inside the full fees level of Euribor plus 15.5bp, most of it at plus 14.5bp and a little at plus 15bp. The paper went to a variety of accounts across Europe, with one investor taking a large chunk and the rest taking tickets of Eu5m to Eu20m.

* Veneto Banca SCarl

Rating: BBB+

Amount: Eu180m

Maturity: April 12, 2005

Issue/fixed re-offer price: 99.77

Coupon: three month Euribor plus 35bp

Spread at re-offer: Euribor plus 40bp

Launched: Thursday March 16

Joint books: Banca IMI, Warburg Dillon Read

Bookrunners' comments:

IMI -Veneto Banca is the new name for Banca Popolare di Asolo e Montebelluna. We brought the issue because there is still very good appetite for floaters by small Italian banks and the main buyers of this kind of product are the banks themselves.

All Italian banks are on the hunt for FRN product and they have a lot of credit lines available for new names. In this environment of rising rates, everyone is trying to secure higher yields.

The re-offer spread offered here was Euribor plus 40bp and we were completely sold out before launch.

Warburg - Veneto Banca is a medium-sized Italian bank based in the country's north-eastern province of Treviso. Its total assets at the end of 1998 stood at almost Eu2bn. Veneto Banca is rated BBB+ by S&P, a rating which is influenced more by the bank's small size than its financial strength.

There are not many floaters in the market which offer a yield of Euribor plus 40bp and the take-up of these bonds was therefore very rapid.

We lead managed a three year deal last year for Banca Popolare di Asolo e Montebelluna which is the former name of Veneto Banca and so there were some lines available for the credit in Europe.

Other than the predictably strong Italian bid for this paper, we sold good tickets into Germany, France and Ireland. All sales were made at the re-offer of Euribor plus 40bp.

Market appraisal:

"...the pricing looked fair and for a couple of weeks five year paper has been well bid in France and Germany. Funds are still keen to stay liquid and this is the kind of supply they are looking for.

We couldn't really see how the deal went overall, only having a small allocation, but there seems to have been little flowback and overall it looked OK."

  • 17 Mar 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%