Popular Issues €1 Billion in Mortgage Bonds at 2.2%

2/04/2014 – Cinco Dias

Risk premium below 170 basic points caused frantic bond issue by banks and companies. The turn came for Banco Popular that successfully issued €1 billion in mortgage-backed notes for 5.5 year.

Interest rate has been fixed at spread of 115 basic points above midswap, equivalent to 2.22%. Reception was good, as demand showed 175 orders for total of €2.5 billion. International investors monopolized 84.3% of the entire demand.

Talking about countries, Germany accounted for 32.4%, the United Kingdom for 20.7%, Italy for 9.6% and France for 5.8%. By entities, 71.7% corresponded to fund managers, 14.5% to insurance and pension funds, 6.3% to banks, 4.2% to private equity and 3.3% to central banks.

Since the beginning of the year, in total Popular has issued €1.75 billion in bonds. Apart from the latest €1 billion issue, in January the bank placed another €0.5 billion in senior debt.



Original article: Cinco Días

Translation: AURA REE