Austria, UK, Corporates Keep European Credit Market Busy

By Serena Ruffoni

Tuesday was a busy day for European credit markets.

CDS:

iTraxx Europe index: 3 BPs tighter at 97 BPs

iTraxx Crossover index: 13 BPs tighter at 387 BPs

NEW ISSUES

The U.K. sold 5 billion pounds ($8.02 billion) of its new gilt maturing March 22, 2068. The bond has a 0.125% coupon and was sold at a reoffer price of 99.37, for a yield of 0.137%.

ICADE priced a 500 million euro ($675.8 million) 2.25% bond maturing Jan. 30, 2019 and a EUR300 million 3.375% bond maturing Sept. 29, 2023.

Danske Bank Tier 2 
Amount:           EUR1 billion 
Maturity:         Oct. 4, 2023 
Coupon:           3.875% 
Payment Date:     Oct. 4, 2013 
Spread:           262.5 bps over midswaps 
Debt Ratings:     BBB- (Standard & Poor's) 
                  A-   (Fitch) 
 
AUSTRIA 
Amount:           EUR4 billion 
Maturity:         Oct. 19, 2018 
Coupon:           1.15% 
Issue Price:      99.848 
Payment Date:     Sept. 27, 2013 
Spread:           11 bps below midswaps 
Debt Ratings:     Aaa (Moody's) 
                  AA+ (Standard & Poor's) 
                  AAA (Fitch) 
Denominations:    EUR1,000; 
Listing:          Vienna 
 

COMING UP:

Veneto Banca Scpa has mandated banks for a possible euro-denominated senior issue, subject to market conditions.

Bank of Ireland Mortgage Bank has mandated banks for a seven-year euro-denominated covered bond transaction, subject to market conditions.

Mediobanca-Banca di Credito Finanziario SpA has mandated banks to arrange a series of fixed-income investor meetings beginning Sept. 30 across Europe to present their new Obbligazioni Bancarie Garantite program. A transaction may follow, subject to market conditions.

Write to Serena Ruffoni at [e-mail]