LONDON (IFR) – Following the previous week’s four foreign bank issues, last week saw another three come to market.
Muenchener Hypothekenbank, Deutsche Bank (DE:) and National Australia Bank made up the roster of FIG names, printing SFr640m (US$661m) between them.
On Tuesday, Deutsche Bank continued its issuance spree across currencies and classes – having printed senior non-preferred debt in euros and sterling and covered bonds in euros – with a new Swiss franc offering.
Books opened for a minimum SFr150m five-year at mid-swaps plus 130bp area, with the size quickly increased to a minimum SFr175m before SFr200m was priced at 125bp over.
A total of 37 accounts took part, mostly Swiss, although there were small orders from Germany and Liechtenstein. Asset managers took more than half of the paper (63%), with pension funds and private banks splitting most of the remainder and insurers taking only 7.3%.
The spread level was in line with its euro curve, as well its rather flat Swiss curve. All of Deutsche’s Swiss deals maturing in 2022 and 2023 are bid in the context of a 120bp-130bp Z-spread.
Deutsche Bank was sole bookrunner on the Baa3/BBB-/BBB rated deal, with UBS as joint lead no books.
NAB followed on Wednesday with another SFr200m print, this time in nine-year senior unsecured format.
Books opened for a minimum SFr200m at mid-swaps plus 31bp area, with that amount priced in line with guidance, equivalent to 62.4bp over government paper, or a 0.065% yield.
The level was in line with comparable Australian names, with CBA December 2029s quoted at 33bp-27bp ahead of the new deal.
An all-Swiss contingent of investors was led by asset managers, who took nearly three-quarters of the deal.
NAB is rated Aa3/AA-/AA- and Credit Suisse (SIX:) was sole lead on the deal.
Well-known name and regular issuer in the Swiss market MunHyp on Wednesday mandated Credit Suisse as sole bookrunner for its inaugural Swiss franc-denominated non-preferred senior fixed-rate green bond benchmark, the first green SNP in the franc.
Books opened early on Thursday morning for a minimum SFr100m long five-year due December 2025 at mid-swaps plus 53bp area with an expected 0.125% coupon.
Less than an hour later, it was upsized to a minimum SFr200m at revised 51bp-53bp guidance, before being finalised as SFr240m at 51bp over.
That level put the new green bonds some 7bp inside MunHyp’s conventional Swiss franc curve.
The paper was sold to 37 Swiss accounts, mainly asset managers, who took slightly over 70% of the deal. Insurers took nearly 20.5%, while private banks and pension funds took the remainder.
According to one lead official, Switzerland does not really have green-only investors, adding that account managers who were full on the name added fresh limits for the green aspect, and more or less all orders were larger than in a usual transaction.
The bond is expected to be rated A2 Moody’s.
(This story will appear in the January 18 issue of IFR Magazine) OLUSECON Reuters US Online Report Economy 20200117T183026+0000