Tue Feb 24, 2015 11:11am EST
(Add background, quotes)
By Alice Gledhill
LONDON, Feb 24 (IFR) - Arion Banki is taking steps towards reviving the senior deal it postponed last April, buoyed by increased risk appetite and an improving backdrop for the country's banks.
The Icelandic lender looked at the market last spring, but the pricing on offer was more than the issuer wanted to pay and plans were delayed further by deteriorating market conditions.
However, the tone has improved markedly, helped by the European Central Bank (ECB) announcement in January that it would start buying 60bn of government bonds monthly until at least September 2016, driving yields lower and spreads tighter across asset classes.
"The market is more constructive in a broader context than it has been for a long time, and Iceland has made good progress in the last 12 months around topics such as the capital controls. This has driven in spreads for the sovereign significantly, and the sovereign itself was well received when it was active in the market," said Tommy Paxeus, head of Nordic FIG DCM at Deutsche Bank.
According to Eikon, Iceland's 2.5% July 2020 bond has tightened by almost 60bp since the end of last year to a Z-spread of 131.86bp.
The transaction from the issuer formerly known as Kaupthing Bank would be its first wholesale deal in a major currency in more than six years.
Islandsbanki last May priced a 100m two-year issue that was Iceland's first euro-denominated bank bond since the country's financial collapse.
"This is an exercise undertaken by Arion in establishing Icelandic banks as regular issuers," Paxeus added.
The bank is to host an investor call on Wednesday, February 25, regarding its annual results, due to be released today (Tuesday).
This will be succeeded by a series of investor meetings in Europe on Thursday and Friday, via Citigroup, Deutsche Bank and Nomura, ahead of the possible euro-denominated trade.
Deutsche's Paxeus said that the roadshow would be crucial to establishing size, maturity and pricing.
"The price should be lower now than ever since the start of the crisis, as both the Icelandic banks and the sovereign are in a good position. Arion has a strong balance sheet, stable business model and is extremely well capitalised."
In a debt investor presentation released in the third quarter of 2014, Arion Banki said it was well prepared for the lifting of capital controls and had a 21.1% Core Tier 1 ratio.
Arion Banki is rated BB+ by S&P with a positive outlook. It is 87% owned by its creditors and 13% by the Icelandic government. (Reporting by Alice Gledhill, editing by Helene Durand, Philip Wright)
- Link this
- Share this
- Digg this
- Reprints
Anda sedang membaca artikel tentang
UPDATE 1-Arion Banki to revive senior deal
Dengan url
http://streswajah.blogspot.com/2015/02/update-1-arion-banki-to-revive-senior.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
UPDATE 1-Arion Banki to revive senior deal
namun jangan lupa untuk meletakkan link
UPDATE 1-Arion Banki to revive senior deal
sebagai sumbernya
0 komentar:
Posting Komentar