Chicago, Jan. 27 – Czech Republic’s Komercni Banka AS sold €500 million 0.01% mortgage covered bonds with a five-year tenor (//AAA), according to a company notice.
The notes have a soft bullet maturity, or a one-year extension.
They priced at mid-swaps plus 12 basis points, or a re-offer yield of 0.315%.
Initial price talk was in the mid-swaps plus 18 bps area. Talk was tightened to mid-swaps plus 14 bps and pricing ultimately came in under that talk.
The offer was approximately 2.5x oversubscribed with over €2 billion in the order book.
The notes were marketed to investors via telephone meeting.
Societe Generale CIB was managing the deal as global coordinator and joint bookrunner.
Barclays and J.P. Morgan were joint bookrunners. Helaba and Nord/LB were co-managers.
The financial services company is based in Prague.
| Issuer: | Komercni Banka AS
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| Amount: | €500 million
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| Maturity: | Jan. 20, 2026
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| Securities: | Mortgage covered bonds
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| Global coordinator: | Societe Generale CIB
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| Joint bookrunners: | Barclays and J.P. Morgan
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| Co-managers: | Helaba and Nord/LB
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| Coupon: | 0.01%
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| Price: | 101.64
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| Spread: | Mid-swaps plus 12 bps
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| Pricing date: | Jan. 13
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| Rating: | Fitch: AAA
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| Price talk: | Initially mid-swaps plus 18 bps; revised to mid-swaps plus 14 bps
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