Bond markets are (sort of) open to peripheral issuers

Iberdrola and Telecom Italia were on Thursday able to issue debt in the primary market, in bonds for a total amount of €600mn at four years and €750mn  at five years, respectively. According to analysts at Banco Santander

“issuers took advantage of a perhaps passing opportunity to place debt, long before the critical dates of the European Counci

re-a7.html”>help fix credit scorel meeting of October 23 and the G20 November 3 and 4 summit, in case the mood deteriorates by then. These Iberdrola and Telecom Italia bonds proved that bond markets are open to peripheral issuers, albeit at a high cost, as the new issue premiums were generous.”

The issue price of €750mn of Telecom Italia at five years was set at m/s +498.1 bp. The designated entities for this operation were BNPP, Deutsche, Banca IMI, BBVA, Citigroup, Credit Suisse and Mediobanca. Ratings: Aa2/AA-/AA-.

Iberdrola's issue price of €600mn at 4 years was set at m/s +290 b.p., in line with its guidance. The entities designated for this operation were BBVA, BAML, Deutsche Bank, Goldman Sachs, ING and Mizuho. Ratings: A3 e/A- e.