Chicago, Nov. 6 – Bulgaria, through its Minister of Finance, priced €2.3 billion of bonds in a two-part transaction (Baa1//BBB) on Monday, according to a market source.
The republic priced €1.3 billion of bonds in a 7.5-year tranche with a 4 3/8% coupon. There was a discount of 98.175 for a 4.673% yield. Alternatively, pricing came at 150 basis points over mid-swaps, or 206.2 bps over Bunds. Initial price talk was in the mid-swaps plus 180 bps area, with guidance pushing the notes into the mid-swaps plus 160 bps area.
The relatively smaller €1 billion 12.5-year tranche priced with a 4 7/8% coupon at 97.719 to yield 5.13%. Pricing came at mid-swaps plus 185 bps, or at Bunds plus 222.1 bps. Initial talk had the tranche in the mid-swaps plus 210 bps area, later guided to the 190 bps area.
The Regulation S deal has JPMorgan handling billing and delivery. Bookrunners also include BNP Paribas, Credit Agricole CIB and Deutsche Bank.
The books were well-oversubscribed; however, investors were nearly twice as interested in the shorter tranche. The final order book was above €4.2 billion for the 7.5-year tranche and €2.3 billion for the 12.5-year notes.
The notes will be listed in Luxembourg.
| Issuer: | Bulgaria
|
| Amount: | €2.3 billion
|
| Issue: | Bonds
|
| Bookrunners: | JPMorgan, BNP Paribas, Credit Agricole CIB and Deutsche Bank
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 13
|
| Ratings: | Moody’s: Baa1
|
| Fitch: BBB
|
| Distribution: | Regulation S
|
|
|
| 7.5-year notes
|
| Amount: | €1.3 billion
|
| Maturity: | May 13, 2031
|
| Coupon: | 4 3/8%
|
| Price: | 98.175
|
| Yield: | 4.673%
|
| Spread: | Mid-swaps plus 150 bps, or Bunds plus 206.2 bps
|
| Price talk: | Mid-swaps plus 180 bps area, revised guidance to mid-swaps plus 160 bps area
|
| ISIN: | XS2716887760
|
|
|
| 12.5-year notes
|
| Amount: | €1 billion
|
| Maturity: | May 13, 2036
|
| Coupon: | 4 7/8%
|
| Price: | 97.719
|
| Yield: | 5.13%
|
| Spread: | Mid-swaps plus 185 bps, or Bunds plus 222.1 bps
|
| Price talk: | Mid-swaps plus 210 bps area; revised guidance to mid-swaps plus 190 bps area
|
| ISIN: | XS2716887844
|
|
|
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