in excess of €750m, and inside IPTs of 40bp
area.
4HEûmOATERûCAMEûROUGHLYûINûLINEûWITHû
WHEREûAûlVE
YEARûlXEDûWOULDûPRICE û
implying the issuer saved the 3s/6s basis.
“It’s an interesting dynamic, and one that
triggered a lot of FRNs last year,” said a
banker off the trade. “I’d expect to see
follow-on.”
BNPP was not the only issuer to sell an
FRN last week, with LEASEPLAN locking in a
€500m three-year senior (Baa1/BBB-/BBB+) at
a discount margin of 32bp over three-month
Euribor.
Increasing investor appetite for FRN paper
is easy to understand, given the widespread
view that spreads will widen this year, a
banker on LeasePlan said.
“You’re seeing not only money market funds
coming in, but also bank treasuries and more
and more credit funds that are looking to park
cash in short-dated FRN paper, providing the
coupon is at least at zero,” he said.
Lengthening of duration in the FRN
market is also likely to continue, he said,
after several seven-years in 2017.
“We might see more of that this year,
both in senior preferred and senior non-
preferred. I wouldn’t be surprised to see a
10-year FRN, to be honest,” he said.
STICKING WITH FIXEDSOCIETE GENERALE, however, stuck with the
lXED
RATEûFORMATûASûITûSOLDûAûõBNûSEVEN
YEARûlXEDûATûSWAPSûPLUSûBP ûHAVINGûDRAWNû
in more than €2bn in orders.
It moved around 10bp from low 60s IPTs
but still fell just short of where some argued
it should land.
h)TSûNOTûAûBLOWOUT vûSAIDûTHEûlRSTûBANKERû
prior to launch, who saw fair value at 43bp.
“It should land at 50bp or even through
that, but starting at low 60s doesn’t give you
THATûMUCHûmEXIBILITYû4HEYûMUSTûBEûLOOKINGû
for size.”
Leads, however, saw fair value at 45bp,
pegging the January 2022s at 35bp and the
January 2028s at 59bp.
In the subordinated market, CREDIT
AGRICOLE ASSURANCESûCOULDûOFFERûSûlRSTû
euro insurance Tier 2. It announced investor
meetings for a 30NC10 benchmark,
beginning last Wednesday.
Credit Agricole is global coordinator and
sole bookrunner on the deal, which is
expected to be rated BBB- by S&P.
BARCLAYS MAKES HAY WHILE THE
SUN SHINES – AGAIN
BARCLAYS returned to the euro holdco senior
market last week, extending its strong start
in the funding markets and topping up its
loss-absorbing capacity.
It launched a €1bn 8NC7 (Baa2/BBB/A) at
mid-swaps plus 78bp on books over €2bn,
having earlier started marketing at 90bp
area. The bond was bid around 75bp over on
Friday, according to Thomson Reuters.
The trade followed sterling and US dollar
funding already undertaken by the UK bank
this year, a sign of Barclays’ eagerness to
beat competing supply in what is typically
the year’s busiest month.
Like the dual-tranche sterling senior
(Baa2/BBB/A) sold the previous week, last
Wednesday’s 8NC7s will beef up the UK
bank’s loss-absorbing buffers to help it meet
regulatory requirements.
The issuer said last year that it envisages
issuing around £8bn-equivalent of
MREL-eligible liabilities per annum
from 2018.STRONG TURNOUT FOR MUFG DEBUT
GREEN EUROMITSUBISHI UFJ FINANCIAL GROUP reopened the
euro Green senior unsecured market last
Friday, pricing a €500m no-grow January
2023 at 30bp over mid-swaps.
The deal (A1/A-/A) met with decent
demand, drawing around €1.7bn in orders
ANDûREmECTINGûTHEûDEEPûANDûGROWINGûPOOLûOFû
investors that buy Green debt.
IPTs came at 45bp area and guidance
following at 30bp-35bp via joint lead
arrangers Morgan Stanley and MUFG Securities.
The issue is expected to be TLAC-eligible.
MUFG sold a US dollar Green bond in
September 2016, a US$500m September
2023 note that priced at 115bp over
4REASURIES ûBUTûTHISûWASûITSûlRSTû'REENû
outing in euros.
The US dollar note was bid at Treasuries
plus 79bp last Thursday, according to
Thomson Reuters, equivalent to around
dollar mid-swaps plus 72bp (or euro mid-
swaps plus 28bp).
,ASTûYEARûSAWûTHEûlRSTûEURO
DENOMINATEDû
Green bond to be issued by a private
lNANCIALûINSTITUTIONûORûCORPORATEûINû*APANû
Sumitomo Mitsui Financial Group’s €500m
seven-year green senior priced at swaps plus
41bp on a €1.4bn-plus book.INTESA BUYS BACK €1.7bn OF VENETO,
VICENZA DEBTINTESA SANPAOLO said it would buy back
around €1.7bn of government-guaranteed
senior notes originally issued by two small
regional banks that were placed into
liquidation last summer.
BANCA POPOLARE DI VICENZA and VENETO BANCA
were forced to rely on Italian government
guarantees for funding last year, but have
since failed.
White knight Intesa agreed to take on
their good assets and senior liabilities,
launching a tender offer on January 3
targeting two of those securities - the
€1.75bn 0.5% February 2020 and €3bn
February 0.5% 2020 notes sold by Veneto and
Vicenza, respectively, last February.
4HEûlNALûAGGREGATEûPRINCIPALûAMOUNTûOFû
notes accepted would be €1.7bn, Intesa said
last Monday.SWISS FRANCS
INTERNATIONAL ISSUANCE RE-EMERGES
IN SWISS FRANCSMuch like the corporate new issue market in
3WISSûFRANCS ûTHEûlNANCIALSûSIDEûOFûTHINGSûALSOû
saw the re-entry of foreign issuers last week.
First off the blocks was DEUTSCHE BANK with
a senior non-preferred, following a
triumvirate of sterling and euro deals the
previous week.
Books on the self-led bond opened for a
3&RMû53M ûMINIMUMûlVE
YEARûATû
the mid-swaps plus 60bp area.
Final pricing saw an increased size of
SFr175m coming in line with guidance,
equivalent to Swiss governments plus 98bp,
or a 0.56% yield, with a 0.625% coupon.
At that level, it came with an 8bp new
issue premium.
A fairly large percentage (22%) of foreign
accounts took part, unusually for the Swiss
market. Asset managers, banks, insurers and
pension funds took the majority of the paper.
4HEûFORMATûWASûTECHNICALLYûDElNEDûASû
“Eligible Liabilities Senior Debt Notes”.BONDS FIGALL SAMURAI BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues ¥(m) (%)
1 Daiwa Securities 6 23,220.00 20.0
=1 Mizuho 6 23,220.00 20.0
=1 Mitsubishi UFJ MS 6 23,220.00 20.0
=1 Nomura 6 23,220.00 20.0
=1 Natixis 6 23,220.00 20.0
Total 6 116,100.00
Excluding equity-related debt.
Source: Thomson Reuters SDC code: K11ALL INTERNATIONAL YEN BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues ¥(m) (%)
1 Daiwa Securities 6 23,220.00 20.0
=1 Mizuho 6 23,220.00 20.0
=1 Mitsubishi UFJ MS 6 23,220.00 20.0
=1 Nomura 6 23,220.00 20.0
=1 Natixis 6 23,220.00 20.0
Total 6 116,100.00
Including all Euro, foreign and global issues. Excluding equity-related debt.
Source: Thomson Reuters SDC code: K12