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B. Braun, the German medical and pharmaceutical devices firm, set a new Schuldschein record for low margins, launching a EUR 150m triple tranche transaction amid increasingly aggressive pricing conditions.
DZ Bank and Helaba offered tranches of six, eight and 10 years to Schuldschein investors, with margin ranges of 50bp-60bp, 65bp-75bp and 75bp-85bp respectively.
B. Braun, as a German issuer that has entered the market before, is well known to domestic lenders. "It's a middle of the fairway credit for the Schuldschein market," said one Schuldschein banker in London. Even so, the margins that are offered are tight.
Only partly state-owned issuers, such as Munich Airport, have sold debt with lower margins for five to six year transactions. Some Schuldschein...