Tag: issue

Sabadell Places €1,000M In 10-Year Mortgage Bonds

20 April 2017 – Expansión

It has taken Sabadell just four months to debut on the debt market this year. Yesterday, it completed the placement of €1,000 million in mortgage bonds with a maturity of 10 years, to leave Popular as the only entity that, given the uncertainty surrounding its specific situation, has not resorted to the capital markets to raise finance or secure resources for its capital buffer.

For these bonds, Sabadell is offering a coupon of 1%, in other words, 33 basis points above the mid-swap rate, the reference rate for issuances of fixed income securities in euros. The mortgage bonds are the safest debt that an entity can issue, given that, in Spain, they are guaranteed by all of the mortgage loans of the issuing bank, which serve as collateral in the event of bankruptcy. There has never been a default of this kind in Spain.

To carry out the operation, Sabadell has received help from Barclays, Commerzbank, Crédit Agricole, Lloyds and Natixis, as well as from its own investment banking team. Demand for the bond issue amounted to €2,400 million, in other words, more than twice the amount awarded.

Santander Totta

Meanwhile, Santander Totta, the Portuguese subsidiary of Santander, launched an order yesterday to place 7- and 10-year mortgage bonds. According to sources in the market, the operation will close tomorrow and will serve to raise cheap financing. Besides Santander, the following entities are participating in that operation: Unicredit, Deutsche Bank and Société Générale.

Original story: Expansión (by A. Stumpf)

Translation: Carmel Drake

AHE: Listed Mortgage Securities Tripled In Q1 2016

30 June 2016 – Expansión

In total, the volume of mortgage-backed securities admitted for listing during the first quarter of the year amounted to €22,514 million. According to the Spanish Mortgage Association (‘Asociación Hipotecaria Española’ or AHE), that figure represents a more than three-fold increase in the quantity recorded during the same period in 2015 (€6,300 million). Single mortgage-backed bonds maintained their weight over the total volume issued, accounting for around 53%. The issued volume of that instrument amounted to €7,143 million during the first quarter, up by 13.4% compared to a year earlier.

The issuance of securitisations backed by mortgages between January and March 2016 amounted to €15,371 million, up by 51.6%. The outstanding balance of mortgage securities at the end of March registered a decrease of 5.5% with respect to the same period last year.

Original story: Expansión

Translation: Carmel Drake

Popular Places €1,500M 6-Year Mortgage Bond Issue

26 February 2016 – Cinco Días

Banco Popular has issued €1,500 million in mortgage bonds with a six year term and a price of 88 points above the mid-swap rate. Demand for the bonds has exceeded €2,800 million, according to market sources.

This is the first debt issue that the entity led by Ángel Ron has completed in 2016. Last year, the bank issued debt amounting to €5,050 million in total.

Popular’s most important debt issuances in 2015 included: the issue of senior debt amounting to €500 million, of which 74% was acquired by international investors; €3,000 million in bonds with interest rates that were “historically low” for the entity; and €750 million in Additional Tier 1, which was placed entirely with qualifying international investors within just a few hours.

Original story: Cinco Días

Translation: Carmel Drake

CaixaBank Places €1,500M 7-Year Mortgage Bond Issue

2 February 2016 – Cinco Días

The bank chaired by Isidro Fainé…has placed a 7-year mortgage bond issue amounting to €1,500 million. The entity has been helped by Barclays, Goldman Sachs, Société Générale and UBS.

CaixaBank has placed the debt issue at a price of 78 basis points above the 7-year midswap rate (the risk free interest rate corresponding to that term), slightly below the reference rate of 80 basis points sought at the beginning of the placement. The coupon has therefore been left untouched at 1%.

Demand for the issue has amounted to more than €2,500 million, with more than 125 investors expressing interest in it, of which a significant number were foreigners. This has allowed the entity to reduce the price of the issue. CaixaBank’s last debt issue, which was placed on 4 November 2015, amounted to €1,000 million. It had a five-year term and a coupon of 0.625%. The entity is strengthening its surplus liquidity, which amounted to more than €54,000 million at the end of last year.

Spanish banks are rushing to raise funds on the capital markets. In January, BBVA placed a 5-year senior debt issue amounting to €1,000 million; meanwhile, Bankia placed mortgage debt amounting to €1,000 million; Santander issued 10-year bonds for the same value; and Deutsche Bank issued bonds amounting to €500 million with a 7-year term.

Santander achieved a price of 65 basis points over the midswap rate – the reference index for this kind of debt issue – on its placement. It will pay a coupon of 1.5%. Mediobanca, Natixis and Nomura accompanied the Santander group in the management of the operation.

Javier González, Head of Debt Issues by Financial Entities at BNP Paribas, which participated in the placements of BBVA, Bankia and the Treasury, confirmed that the money invested in these operations has been coming from end investors, such as investment and pension funds.

Banco Santander and Bankia have chosen to issue mortgage bonds because the volatile environment makes this type of asset very popular with conservative investors.

Original story: Cinco Días (by Pablo Martín Simón)

Translation: Carmel Drake

Cajamar Places €750m 7-year Mortgage Bond Issue

16 January 2015 – Expansión

Cajamar Caja Rural has placed an issue of seven-year mortgage bonds amounting to €750 million, maturing on 26 January 2022, according to a statement released by the entity, which reveals that the orders received for the issue have exceeded €1,200 million.

The placement price of the issue – whose initial aim exceeded €500 million – has been set at 90 basis points above the mid-swap, to give a fixed annual coupon of 1.25% and a yield for the investor of 1.359%.

The high demand for this placement, at both a national and international level, indicates the support that institutional investors are showing for the financial activity of Spanish cooperative banks, led by the Cajamar Cooperative Group, according to reports by the bank.

The underwriters of this issue are BBVA, Crédit Agricole, Barclays and SOCGEN.

Original story: Expansión

Translation: Carmel Drake

Santander Issues €3 Bn in Covered Bonds

13/11/2014 – Cinco Dias

Banco Santander has successfully allocated a covered bond issue for €3 billion total. As the Europa Press newspaper informed, the amount is split between 10-year bonds (a €1.75 billion worth) and 20-year debt securities (€1.25 billion).

The bank chaired by Ana Botin named Barclays, Nomura, Natixis and it itself as underwriters for the operation.

The price for 10-year bonds closed at 23 bps over the mid-swap, and for 20-year securities it fixed at 43 bps over the mid-swap, as this issue was a longer-run one.

The issue by Banco Santander coincides with the new guaranteed bonds purchase program by the European Central Bank (ECB) aiming at stimulating credit flow to companies and households in the eurozone. Also, the entity led by Mario Draghi scheduled an asset-backed securities (ABS) purchase scheme for November.

 

Original article: Cinco Días

Translation: AURA REE