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Senior Debt

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FIG
◆ Deal benefits from limited size, green label and short tenor, says lead ◆ Small NIP paid ◆ BPER involved in complex Italian M&A
◆ Larger-than-usual size ◆ Constructive Friday opening led to three well-received FIG trades ◆ ...of which Alpha may have paid the least NIP
◆ Unusually busy Friday for European bank funding ◆ Small premium, large demand ◆ Meanwhile 10 year OAT-Bund spread breaches 100bp
◆ Market participants await Meta's rumoured euro debut ◆ Carrefour sells first Friday corporate deal since June ◆ Three FIG names hit the market
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  • FIG
    The only borrower to brave a senior unsecured market beset by Greek PSI anxiety and volatile secondary spreads this week failed to match the traction of other recent transactions. But despite the €1bn two year deal’s underperformance, a more stable end to the week left FIG bankers anticipating a stronger primary showing next week.
  • FIG
    Senior unsecured syndicate bankers confused by a lack of supply on Friday said they expected issuers to hit the market next week, as secondary spreads continued to tighten.
  • FIG
    France’s BPCE on Thursday launched a tender offer for €3.125bn of senior debt, split between four short dated bonds.
  • FIG
    Banco Popular Español last Friday became the latest peripheral European issuer to access the senior unsecured market, printing €750m of 18 month paper at 275bp over mid-swaps to round off a week that saw a total of €3.5bn in issuance from southern European banks.
  • FIG
    Banks that encumber assets by issuing secured funding are at risk of sidelining senior unsecured investors in the event of a default, especially in the wake of the European Central Bank’s second three year long term refinancing operation (LTRO), Barclays Capital analysts warned this week.
  • FIG
    Doha Bank priced its $500m debut bond late on Wednesday at 262.5bp over mid-swaps, hitting the tight end of the 262.5bp-275bp guidance range. Doha’s deal is being described as well executed, given it had already been able to cut spreads from an initial guidance of around 287.5bp.