2020-04-04 IFR Magazine

SSAR

US DOLLARS

L-BANK SCORES BIG WITH SECOND

DOLLAR ATTEMPT

Landeskreditbank Baden-Wuerttemberg –

Foerderbank shrugged off its failure to

complete an innovative form of auction last

month to attract a bumper order book and

LANDûITSûBIGGESTû53ûDOLLARûTRADEûTOûDATE

(AVINGûCALLEDûOFFûAûMINIMUMû53BNûDEALû

ONû-ARCHûûAFTERûRECEIVINGûBIDSûOFû53Mû

the federal state-guaranteed lender mandated

Barclays, Bank of Montreal, JP Morgan and RBC to

lead the new deal. BMO and JPM were lead

managers for the cancelled transaction.

But the way the two transactions

unfolded could not have been more

different with L-Bank receiving more than

53BNûOFûDEMANDûFORûTHEû53BNûDEAL

“They’re back from the dead!” a syndicate

banker away said. “While there might have

been some bitter investors after their recent

attempt, there’s been so little supply in

dollars that investors are piling into deals.”

Earlier that week, the Asian Development

"ANKûPRICEDûAû53BNû!PRILûûITSû

largest bond ever, on the back of more than

53BNûOFûDEMANDûFORûEXAMPLE

That deal emerged after transactions

FROMûTHEûLIKESûOFûTHEû+INGDOMûOFû3WEDENû

and the African Development Bank helped

set primary pricing reference points.

“When L-Bank tried to do their deal in

March, there was a lot of humming and

hawing over whether you should market a

DEALûVERSUSû53û4REASURIESûORûSWAPSvûANOTHERû

banker said.

h3INCEûTHENûTHEûMARKETûHASûSETTLEDûANDû

the books have shot up in size as the

investor base has continued to grow.”

The market that had been dominated by

bank treasuries has also seen central banks

return in size, lured by the attractive spreads

OVERû53û4REASURIES

“You’re always going to get a far bigger

breadth of investors at Treasuries plus

50-something than you are at Treasuries

PLUSûBPûWHICHûISûWHEREûTRADESûWEREû

pricing in January,” the second banker said.

Leads started marketing at the 35bp area

over mid-swaps, but revised the level 5bp

tighter during marketing, meaning the

trade will end up pricing at the wide end of

the 20bp–30bp range suggested in the

March trade. At 30bp over, the spread was

equivalent to 52.4bp over Treasuries.

JUICY TREASURY SPREADS LURE CENTRAL

BANKS TO SSA DOLLARS

33!ûISSUERSûWILLINGûTOûGOûTOûTHEû53ûDOLLARû

market were rewarded with exceptional

International Financing Review April 4 2020 29

BONDS SSAR

EUROPEAN SOVEREIGN BOND AUCTION RESULTS WEEK ENDING APRIL 3 2020

Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover

Mar 31 2020 Italy (FRN) €750m 0.107 Dec 15 2023 0.660 2.

Mar 31 2020 Italy €2.75bn 0.350 Feb 1 2025 0.800 1.

Mar 31 2020 Italy €1.5bn 1.350 Apr 1 2030 1.440 1.

Mar 31 2020 Italy €3.5bn 0.950 Aug 1 2030 1.480 1.

Apr 1 2020 Germany €2.719bn 0.000 Apr 11 2025 -0.660 1.

Apr 2 2020 Spain €2.339bn 0.000 Apr 30 2023 0.071 1.

Apr 2 2020 Spain €1.149bn 0.000 Jan 31 2025 0.238 2.

Apr 2 2020 Spain €1.177bn 0.500 Apr 30 2030 0.694 2.

Apr 2 2020 Spain €1.322bn 1.000 Oct 31 2050 1.565 1.

Apr 2 2020 France €4.928bn 0.750 Nov 25 2028 -0.040 1.

Apr 2 2020 France €2.562bn 0.000 Nov 25 2029 0.040 2.

Apr 2 2020 France €2bn 1.750 Jun 25 2039 0.510 1.

Apr 2 2020 UK £2bn 1.250 Oct 22 2041 0.800 2.

Source: IFR

ALL BONDS IN EUROS

BOOKRUNNERS: 1/1/2020–31/3/

Managing No of Total Share

bank or group issues €(m) (%)

Including Euro-preferreds. Excluding equity-related debt,

US Global ABS/MBS.

Source: Refinitiv SDC code: N

1 JP Morgan 109 37,536.37 8.

2 BNP Paribas 110 30,427.08 6.

3 Barclays 108 28,589.40 6.

4 HSBC 104 28,508.99 6.

5 Credit Agricole 92 27,806.54 6.

6 UniCredit 86 24,031.96 5.

7 Deutsche Bank 89 23,825.03 5.

8 SG 68 23,127.30 5.

9 BofA Securities 72 22,108.37 5.

10 Goldman Sachs 53 18,894.65 4.

Total 468 445,868.

ALL INTERNATIONAL BONDS (ALL CURRENCIES)

BOOKRUNNERS: 1/1/2020–31/3/

Managing No of Total Share

bank or group issues US$(m) (%)

Note: All deals submitted as of 2pm GMT as of Mar 31 2020

Including Euro, foreign, global issues. Excluding equity-related debt,

US Global ABS/MBS.

Source: Refinitiv SDC code: J

1 JP Morgan 411 116,888.23 9.

2 BofA Securities 288 85,231.23 6.

3 Citigroup 293 83,392.27 6.

4 Barclays 281 78,630.20 6.

5 Goldman Sachs 211 68,062.09 5.

6 HSBC 261 58,133.19 4.

7 Deutsche Bank 215 52,755.53 4.

8 Morgan Stanley 149 50,929.88 4.

9 BNP Paribas 180 49,399.04 4.

10 Credit Agricole 161 40,845.28 3.

Total 1,497 1,234,026.

ALL INTERNATIONAL US$ BONDS

BOOKRUNNERS: 1/1/2020–31/3/

Managing No of Total Share

bank or group issues US$(m) (%)

Note: All deals submitted as of 2pm GMT as of Mar 31 2020

ncluding Euro, foreign and global issues. Excluding equity-related debt, US Global ABS/MBS.

Source: Refinitiv SDC code: O

1 JP Morgan 244 69,663.78 10.

2 Citigroup 215 59,866.94 9.

3 BofA Securities 202 57,640.92 9.

4 Goldman Sachs 151 44,730.68 7.

5 Morgan Stanley 112 40,244.80 6.

6 Barclays 143 38,546.87 6.

7 Wells Fargo 110 30,021.29 4.

8 Deutsche Bank 114 22,157.61 3.

9 RBC 80 19,216.96 3.

10 HSBC 105 18,974.42 3.

Total 677 642,708.

ALL US DOLLAR FIXED-RATE GLOBALS

BOOKRUNNERS: 1/1/2020–31/3/

Managing No of Total Share

bank or group issues US$(m) (%)

Note: All deals submitted as of 2pm GMT as of Mar 31 2020

Excluding equity-related debt, ABS/MBS.

Source: Refinitiv SDC code: O

1 JP Morgan 88 34,995.65 12.

2 BofA Securities 88 32,466.53 12.

3 Citigroup 77 32,192.43 11.

4 Goldman Sachs 50 23,164.15 8.

5 Morgan Stanley 36 17,501.07 6.

6 Wells Fargo 49 14,644.39 5.

7 Barclays 38 14,027.71 5.

8 Deutsche Bank 28 9,524.27 3.

9 TD Securities 24 8,790.01 3.

10 RBC 28 8,498.45 3.

Total 153 270,459.

6 IFR Bonds 2327 p 25 - 65 .indd 29 03 / 04 / 2020 20 : 28 : 58