Press Release – 8 February 2018 - Hellenic Republic – EUR 3.0 billion Notes due 15 February 2025
Transaction Highlights
On Thursday, 8 th February, the Hellenic Republic priced a new €3bn 7-year RegS/144a benchmark at a re-offer yield of 3.500%. Pricing equated to a spread of 311.2 basis points over the reference Bund, 0.5% DBR due February 2025.
Orderbooks were oversubscribed for a total volume in excess of €6bn from around 210 investors. This permitted pricing to develop from the initial price thoughts of 3.75% area to live guidance of a 3.500% to 3.625% range, finally being set at 3.500%.
Today’s new issue marks the Republic’s first new bond issuance since their €30bn debt exchange exercise in November 2017, which resulted in five new benchmark references for the sovereign (GGB Jan-23, Jan-28, Jan-33, Jan-37, Jan-42), providing further liquid pricing references for today’s new transaction. For comparison, this new 3.500% GGB due February 2025 follows a previous 5-year syndication (due August 2022) which was executed in July 2017 with a coupon of 4.375%, combined with a switch tender of the existing April 2019 issue. The order book of the August 2022 comprised €4.7bn in new cash and €1.57bn switch tenders (all of which were accepted).
Execution Details
On Monday, 5th February, the Hellenic Republic announced its intention to issue a new 7-year eurodenominated RegS/144a benchmark via Barclays, BNP Paribas, Citi, JP Morgan, and Nomura, to be launched in the near future.
The onset of equity market volatility in the US soon after the announcement resulted in the group monitoring markets for the optimal opportunity to launch the new bond into a set of conditions with few distractions for investors.
Just before 9:00 GMT on Thursday, 8th February, initial price thoughts were released in the 3.75% area.
Indications of interest grew and were in excess of €6 billion (including €300mm in JLM interest) when books opened just after 11:20 GMT, with guidance revised to the 3.5%/3.625% area
. Just after 13:30 GMT, the sizeable book and relatively limited price sensitivity of the orders allowed the yield to be set at 3.50%. It was also announced that books globally would be subject at 14:00 GMT.
Shortly thereafter at 14:20 GMT, final terms for the transaction were released, with the size set at €3bn and a final orderbook in excess of €6bn (incl. €320mm in JLM interest).
Just after 16:30 GMT, the transaction was officially priced at 3.50%, equivalent to a spread of 311.2 basis points over the reference Bund, 0.5% DBR due February 2025.
page source http://www.helex.gr/
