EUROFIMA successfully issued a new USD 700 million 3-year benchmark
On Tuesday 10th November 2020, EUROFIMA successfully issued a new USD 700 million 3-year RegS benchmark. The deal was the first public USD SSA benchmark after the US presidential elections and marks EUROFIMA’s first fixed rate USD benchmark since 2015.
Following a series of investor calls, the new November-2023 RegS US$ Benchmark was announced on Monday 9th November 2020 with Initial Pricing Thoughts (“IPTs”) at mid-swaps +13bps area. The transaction immediately gained momentum, benefitting from high quality orders from Central Banks and Official Institutions. Books officially opened on Tuesday with guidance of mid-swap +12bps area – 1bp tighter from IPTs – on the back of IOIs exceeding USD 1.3 billion and an issue size of USD 700 million. The momentum continued in the European morning and books surpassed the USD 1.7 billion mark, when the final spread was set to mid-swaps +10bps which was followed by books closing.
Over 50 investors participated in the offering with Central Banks and Official Institutions across the globe representing the bulk of the demand, receiving 71% of the final allocations, followed by Asset Managers (15%) and Banks (14%). Regional distribution was split relatively evenly amongst Asia (31%), Europe (28%) and Americas (27%) while MEA accounted for 14% of the final allocation.
