Fourth USD benchmark for 2018
The bond is maturing 18th October 2021, pays a semi-annual coupon of 3.125% and has an issue price of 99.932%. It gives a spread of 19.5 basis points over the 2.875% US Treasury due October 2021 and a spread of +3 basis points to mid-swaps.
For a three year KBN Benchmark, this is the lowest level achieved against both swaps and US Treasuries in the last 10 years.
The final order book stood in excess of USD 2 billion with nearly 70 investors participating. Central banks and official institutions from across the globe represented the bulk of the demand, receiving 68% of the final allocations. Investors from the Americas were dominant at 44%, followed by investors from Asia at 31% and Europe (25%).
“This deal was an unquestionable success and highlighted how sheltered the SSA market is currently from broader market weakness. The deal attracted a strong bid from extremely high quality accounts from the Central Bank, Official Institution and Real Money universes. We are thrilled to have been a part of this transaction with KBN and look forward to seeing strong performance of the new deal in the secondary market”, comments Issy Spanswick, SSA Syndicate, Morgan Stanley in a press release issued by the lead managers of the deal.