Slovak Republic prices €1 billion 30-year notes; Romania places €1 billion tap due 2027

By Paul A. Harris

Portland, Ore., Oct. 10 – In Tuesday’s session the Slovak Republic priced a €1 billion issue of 30-year notes.

The notes (A2/A+/A+) were priced at a 45 basis points spread to mid-swaps, according to a market source.

The deal came tight to talk in the mid-swaps plus 50 bps area.

The deal played to high domestic demand, with orders in the ranges of €3 billion to €4 billion, the source said.

Citigroup, CSOB (KBC Group), HSBC and Natixis were the managers.

And Romania priced a €1 billion add-on to its 2 3/8% notes due 2027 (Baa3/BBB-/BBB-) at 102.125 to yield 2.114%.

Barclays Bank plc, Citigroup Global Markets Ltd., Erste Group Bank AG, Societe Generale and ING Bank NV managed the sale.

Demand in the emerging markets remains focused on the new issue market, a trader said.

There is a great deal of cash chasing yield in the asset class, with nearly every new deal being vastly oversubscribed.

Inflows to emerging markets are estimated to be $92.4 billion, year-to-date.

Headline news might register an impact in the secondary market, the trader said.

However the impression among investors is that there are green lights along the track ahead.

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