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Bank of New Zealand priced a euro 500m three year deal this week, only two weeks after it was forced to postpone a five year trade in the same currency. The shorter maturity and capped deal size yielded a far more positive result, with over 100 accounts contributing to an order book that was three times covered.
"If you read the market, it was obvious there was demand at the short end and the issuer was flexible," said a syndicate lead. Barclays, Nationwide and National Australia Bank used a three year floating format to raise sterling funding in January, but until BNZ's trade there had been no euro issuance in three years or shorter.
Leads DZ Bank, JP Morgan, National Australia Bank, Natixis, RBS and UniCredit opened books on the no-grow May 2015 on Monday, going out with guidance of the 125bp over mid-swaps area. Guidance was then revised twice -- first to 120bp area,...