Initial price thoughts set on CaixaBank subordinated Tier 2 bond

Written By Unknown on Selasa, 29 Oktober 2013 | 16.48

By Josie Cox

Tue Oct 29, 2013 4:26am EDT

LONDON, Oct 29 (IFR) - CaixaBank is marketing a subordinated Tier 2 bond in the area of mid-swaps plus 415bp, after receiving indications of investor interest above EUR750m, a banker involved in the deal said on Tuesday.

The Spanish lender on Monday mandated Bank of America Merrill Lynch, Barclays, BNP Paribas, CaixaBank and Goldman Sachs to run the 10-non-call five offering, designed to bolster its total capital position and its balance sheet's loss-absorption capacity.

CaixaBank is the first Spanish bank to emerge from the earnings season blackout, capitalising on the current strong bid for higher-yielding peripheral bank debt which a series of Italian banks have taken advantage of in recent weeks.

CaixaBank is rated BBB-/BBB by S&P/Fitch at the senior level, with the new deal expected to be one notch lower at BB+/BBB-.


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