By Sarka Halas
Ireland tapped bond markets for the first time Tuesday since its
bailout in November 2010, and Poland became the first government
from continental Europe to issue debt in 2013. Turkey was selling
dollar debt.
Banks and companies from fiscally stressed Europe continue to
provide avenues for snagging higher-yielding debt, with Portugal's
Banco Espirito Santo SA selling five-year debt and Spain's Banco
Popular Espanol and Telefonica also borrowing on the open market.
Investors piled in to buy Telefonia's debt--the sale was almost 10
times oversubscribed.
Not everyone was impressed with the upbeat sentiment and the
flurry of activity. "The markets do seem rushed. This will probably
lead to over-bought markets and over-confident politicians... and
we know how that ends," one investor said.
From a wider open in the morning, credit markets turned tighter
by mid-day, reflecting upbeat sentiment.
CDS:
iTraxx Europe: two basis points tighter at 100/101 basis
points
iTraxx Crossover: seven basis points tighter at 422/424 basis
points
NEW ISSUES:
Ireland Tuesday planned to increase the size of an outstanding
bond, the country's first such transaction since its bailout in
November 2010. Ireland will price the EUR2.5 billion ($3.27
billion) bond at 250 basis points over midswaps.
Poland plans to issue a new six-year, euro-denominated benchmark
bond, said one of the banks managing the deal Tuesday. The initial
price indication is between 65 and 70 basis points over the
reference midswap rate.
Turkey is planning a benchmark-size, dollar-denominated, 10-year
bond. Suggested pricing is in the area of 165 basis points over the
reference Treasury.
Spain's Banco Popular Espanol (POP.MC) has set pricing on its
senior unsecured, euro-denominated, 2.5-year bond in the area of
4.125%.
Nordea Bank Finland (NDA1V.HE) has set pricing on its
euro-denominated, seven-year covered bond at around the high-teens
over the reference midswaps rate.
Portuguese bank Banco Espirito Santo SA (BES.LB) Tuesday was
selling 500 million euros ($653.4 million) of five-year bonds.
Price guidance was set in the area of a 5% yield.
Financial services company Prudential Financial Inc. (PRU) has
planned a dollar-denominated, tier-1 perpetual bond.
Standard Chartered PLC (STAN.LN) is preparing to sell
subordinated bonds denominated in dollars with a 10-year maturity.
Price guidance on the so-called lower tier-2 bonds was set in the
area of 225 basis points over Treasurys.
Spanish telecom company Telefonica SA (TEF) is to price its
EUR1.5 billion 10-year bond at 230 basis points over the reference
midswaps rate.
General Electric Capital Corp., the financing unit of General
Electric Corp. (GE), has set pricing on its euro benchmark,
two-part bond. The five-year bond was in the range of 75-80 basis
points over the midswaps rate, while the 10-year bond was in the
area of 105 basis points over the midswaps rate.
German healthcare company Fresenius (FRE.XE) is planning a
EUR500 million seven-year bond. The company will meet investors in
Europe starting Tuesday.
COMING UP:
Eurofins Scientific (ERF.FR), an international group of
laboratories providing services to the pharmaceutical, food,
environmental, and consumer products industries, has planned a
series of investor meetings ahead of a potential hybrid bond.
Belgium has hired Barclays PLC, Citigroup Inc., Royal Bank of
Scotland PLC and Societe Generale SA as joint bookrunners for a
planned syndicated issuance of a 10-year benchmark bond, maturing
June 2023.
(Ben Edwards, Art Patnaude, Emese Bartha, and Serena Ruffoni
contributed to this article)
-Write to Sarka Halas at sarka.halasova@dowjones.com