By Cristal Cody
Tupelo, Miss., Oct. 23 – The Kingdom of Denmark (Aaa/AAA/AAA) priced $2 billion of 0.125% notes due Oct. 27, 2022 on Tuesday at 99.755 to yield 0.248% in its first foreign currency offering since 2014, according to additional details of the previously reported offering in a news release.
The notes priced at mid-swaps plus 1 basis point, or a Treasuries plus 9.85 bps spread,
Guidance on the notes was at the mid-swaps plus 2 bps area, tighter than initial talk in the mid-swaps plus 5 bps area.
The offering had a book size of nearly $8.9 billion.
Danske Markets Inc., HSBC Bank plc, J.P. Morgan Securities plc and Skandinaviska Enskilda Banken were the bookrunners of the Rule 144A and Regulation S issue.
The offering had nearly 115 investors participating with central banks and official institutions representing 74% of the issue.
Investors in Europe, the Middle East and Africa took 50% of the deal, while investors in Asia bought 36% and investors in the Americas purchased 14%.
Proceeds of the issue were swapped to €1.7 billion with a fixed rate.
The transaction followed an update of the government’s EMTN program with the benchmark deal brought to ensure the kingdom has complete and diversified market access through foreign currency funding if needed, according to the release.
Denmark said there are no current plans to issue additional foreign currency bonds in the near term.
| Issuer: | Kingdom of Denmark
|
| Amount: | $2 billion
|
| Description: | Bonds
|
| Maturity: | Oct. 27, 2022
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| Bookrunners: | Danske Markets Inc., HSBC Bank plc, J.P. Morgan Securities plc and Skandinaviska Enskilda Banken
|
| Coupon: | 0.125%
|
| Price: | 99.755
|
| Yield: | 0.248%
|
| Spread: | Mid-swaps plus 1 bp, or Treasuries plus 9.85 bps
|
| Trade date: | Oct. 20
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| Settlement date: | Oct. 27
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| Ratings: | Moody’s: Aaa
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| S&P: AAA
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| Fitch: AAA
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Mid-swaps plus 2 bps area; initial talk at mid-swaps plus 5 bps area
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