20/10/2014 07:28:33 Free Membership Login

Volkswagen Leads Corporate Bond Sales with First Deal of 2013

Date : 01/07/2013 @ 9:40AM
Source : Dow Jones News
Stock : Commerzbank AG O.N. (CBK)
Quote : 10.665  -0.085 (-0.79%) @ 7:13AM
Commerzbank share price Chart

Volkswagen Leads Corporate Bond Sales with First Deal of 2013

Commerzbank (XE:803200)
Historical Stock Chart

2 Years : From Oct 2012 to Oct 2014

Click Here for more Commerzbank Charts.
   By Ben Edwards 
 

Volkswagen AG (VOW.XE) is seeking to sell bonds Monday, the first non-financial company to issue debt in the European primary bond market this year.

Banks were also busy following last week's trickle of financial deals, with Italian lender UniCredit SpA (UCG.MI) offering a 1 billion euro ($1.32 billion) covered bond. Last year, investors had to wait until August for the first covered bond from an Italian bank, also issued by UniCredit.

Akin to that deal in August, UniCredit's borrowing costs are likely to be almost a full percentage point lower than where Italian government bonds of a similar maturity are trading.

Order books for Monday's deal clipped EUR6 billion, suggesting appetite for so-called peripheral debt is still robust.

Credit markets remain relatively upbeat, with the average cost of insuring the debt of European investment-grade companies closing in on its lowest level since mid-May 2011.

Here is a run of how the credit default market stands, who is issuing bonds Monday and what is coming up:

 CDS: 

iTraxx Europe: 2 basis points tighter at 102/103 basis points

iTraxx Crossover: 2 basis points tighter at 427/430 basis points

 NEW ISSUES: 

Volkswagen will price its EUR1 billion, seven-year bond at 78 basis points over midswaps. It is the German automaker's first euro debt sale since August last year.

Abbey National Treasury Services PLC, guaranteed by Santander UK PLC, will price its EUR1 billion, five-year, senior unsecured bond at 97 basis points over midswaps.

UniCredit SpA (UCG.MI) will price its EUR1 billion, seven-year covered bond at 150 basis points over midswaps.

Deutsche Bank AG (DB) sold a EUR1.75 billion 10-year bond with a coupon of 2.375%, equivalent to 78 basis points over midswaps.

Insurance and financial company MetLife Inc. (MET) is planning a two-part bond denominated in euros and sterling, both maturing in 10 years. Suggested pricing on the euro deal was in the area of 80 basis points over midswaps, and 110 basis points over gilts for the sterling tranche.

Dutch public-sector agency Bank Nederlandse Gemeenten, or BNG, is planning a seven-year euro bond. Suggested pricing was in the high 20 basis-point area over midswaps.

 COMING UP: 

German lender Commerzbank AG (CBK.XE) is planning to meet investors ahead of its debut covered bond backed by loans made to small and medium-sized companies, or SMEs. The meetings will commence Jan. 14.

-Sarka Halas, Art Patnaude and Serena Ruffoni contributed to this article.

Write to Ben Edwards at ben.edwards@dowjones.com



Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE and AMEX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 us 141020 07:28