Latvia, Croatia, Caixa Geral to Sell Debt: European Bond Alert
By Shelley Smith
Feb. 28 (Bloomberg) — Croatia is among borrowers seeking
to raise the equivalent of at least 3.5 billion euros ($5.2
billion) from sales of bonds in euros and pounds, according to
data compiled by Bloomberg.
Companies sold $214 billion of bonds denominated in these
currencies so far this year, down from about $379 billion in the
same period a year earlier.
Investment-Grade Sales
CROATIA will sell between 500 million euros and 750 million
euros of bonds in the next two months, its first international
debt sale since 2004. Finance Minister Ivan Suker said Feb. 14
the country will borrow a total of 11 billion kuna ($2.2
billion) this year, mainly to pay maturing debt. (Added Feb. 21)
LATVIA plans to sell bonds in euros, according to HSBC
Holdings Plc, which is managing the issue with UBS AG. Moodys
rates Latvia at A2, its sixth-highest investment-grade ranking.
S%26amp;P and Fitch Ratings grade it two levels lower at BBB+. (Added
Feb. 19)
MUNICIPALITY FINANCE PLC, a funding vehicle for local
governments in Finland, plans to sell bonds in euros, according
to an e-mailed statement from Citigroup Inc. The Helsinki-based
company also hired Deutsche Bank AG and Nordea Markets to
organize the benchmark issue. Moodys Investors Service rates
Municipality Finance at Aaa. S%26amp;P grades the debt an equivalent
AAA. (Added Feb. 5)
TELEKOM AUSTRIA AG, the largest Austrian phone company,
plans to sell bonds in euros, according to UniCredit SpA, which
is managing the transaction with JPMorgan Chase %26amp; Co. The bonds
will be sold by the Vienna-based companys Telekom
Finanzmanagement GmbH unit. Moodys rates Telekom Austria at A3,
its seventh-highest investment-grade rating. S%26amp;P ranks the
company one level lower at BBB+. (Updated Nov. 29)
Covered Bonds and Asset-Backed Debt
Covered bonds are notes backed by mortgages or loans to
public-sector institutions. They differ from asset-backed
securities in that the collateral backing the debt remains on
the borrowers balance sheet, and the borrower is liable for the
debt if the assets are not sufficient.
CAIXA GERAL DE DEPOSITOS SA, Portugals biggest bank, plans
to sell covered bonds in euros, according to Natixis, one of the
banks managing the sale. ABN Amro Holding NV, Dresdner Kleinwort
and the Lisbon-based lenders Caixa Banco de Investimento unit
will also sell the bonds, Natixis said in an e-mailed statement.
The debt will be backed by Portuguese residential mortgages.
Moodys will rate the bonds Aaa. S%26amp;P and Fitch will grade the
debt an equivalent AAA. (Added Feb. 5)
SNS BANK NV, a unit of Dutch financial services company SNS
Reaal Groep NV, plans to sell covered bonds in euros, according
to ABN Amro Holding NV, one of the banks managing the sale.
Barclays Capital and Dresdner Kleinwort are also organizing the
issue, the first of its kind for the Utrecht, Netherlands-based
bank, ABN Amro said in an e-mailed statement. The bonds will be
backed by prime Dutch residential mortgages, ABN Amro said.
Moodys will rate the debt Aaa, the statement said. S%26amp;P and
Fitch Ratings will grade the debt an equivalent AAA. (Added Jan.
23)
BANK OF NOVA SCOTIA, Canadas second-largest bank, is
planning its first sale of covered bonds in euros, according to
a banker managing the sale. Barclays Capital, Deutsche Bank AG
and BNP Paribas SA will manage the issue for the Toronto-based
lender, said the banker, who declined to be identified because
the deal isnt complete. Scotia Capital will also sell the debt.
Moodys will rate the bonds Aaa, according to the banker. Fitch
Ratings will grade the bonds AAA. (Added Jan. 15)
To contact the reporter on this story:
Shelley Smith in London at
