Novobanco raises €750 million in four-year bond sale
Novobanco sold €750 million of four-year covered bonds at about 3.62%, in a deal that drew demand above €1.5 billion.
Novobanco has issued €750 million of four-year covered bonds, in a funding deal that points to continued investor appetite for Portuguese bank debt. Bloomberg first reported the transaction, and ECO has confirmed the final terms published on Thursday.
The bank, which is owned by France’s BPCE group and led by Mark Bourke, will pay midswaps plus 33 basis points, or about 3.62%. That was tighter than earlier guidance of 37 basis points above midswaps, according to the reported terms.
Demand exceeded €1.5 billion. The bookrunners on the deal were Barclays, BMO, DZ Bank, IMI-Intesa Sanpaolo, LBBW and Natixis.
Earlier this week, Novobanco said it made a profit of €585.6 million in the first nine months of the year, down 4.1% from a year earlier, with earnings affected by an additional cost linked to its sale to BPCE at the end of April.
Originally published at Eco.pt
