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Portugal's Caixa Geral de Depositos (CGD) bought back [Euro] 908m of its own covered bonds this week, in a deal that brought in 29% of the outstanding paper.
This is the second highest take-up of a covered bond tender and well above the level that the borrower had aimed for. Millennium BCP's tender, due next week, should have an equally strong result.
CGD's acceptance rate of nearly 30% is the second highest after the 42% participation in an earlier tender by the National Bank of Greece. CGD had targeted an acceptance rate of 24% so, by its own measure, the take-up of its [Euro] 1bn 3.625% 2014s and [Euro] 2.15bn 3.875% 2016s was better than
expected.
The bonds, rated Baa3/BBB-, had respectively been bid at 88.32 and...