Dexia spread drives demand and trumps single-A rating

By Bill Thornhill
05 Jun 2014

The widely anticipated public sector-backed Pfandbrief from Dexia Kommunalbank on Tuesday had been expected to go well, given the juicy spread that was expected. But the level of oversubscription proved a surprise and was the highest of any German deal this year — even putting competing issuance from Portugal into the shade.

The state-owned issuer had been on the road in May explaining how it will be wound down in an orderly manner. On Monday it formally mandated Barclays, Commerzbank, DZ Bank and HSBC as joint lead managers for the €500m single-A rated no-grow deal.

After starting with initial price ...

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