Successful fourth USD benchmark for the year
KBN took advantage of the strong market conditions and clear execution window post Thanksgiving holidays, to complete a successful USD 1.5bn 3-year benchmark.
On Tuesday 1st December, KBN priced a new USD 1.5bn 3-year benchmark at MS+4bps, equivalent to 11.275bps over the UST benchmark.
Building on strong momentum during the European morning, price guidance was revised and set at MS+4bps on the back of demand in excess of USD 2.3bn.
“This transaction wraps up a very successful year for KBN in the USD market and puts us in excellent position heading into what should be an exciting 2021,” says Head of Funding and IR at KBN, Thomas Møller.
With 43 accounts paricipating globally, geographical distribution was led by European accounts who took 48.8% of the transaction, followed by Americas (28.8%) and Asia (22.4%). Central banks and Official institutions took the majority of the allocations at 63.8%, followed by Banks (16.3%) and Fund managers & insurance at 13.6%.
Ebba Wexler, Director, SSA DCM at Citi
"KBN have closed out the year with another hugely successful new issue; moving price on their first 3-year benchmark in over two years by two basis points on the back of a high-quality orderbook, and sizing the transaction at $1.5bn. Following equally successful 5-year and 10-year USD benchmark issuance earlier in the year, KBN have showcased the strength of their credit via the breadth and depth of investor demand that they enjoy across the curve. Citi is delighted to have been involved."
Elena Farrell, Director, SSA DCM at HSBC
“Another fantastic result for KBN in the US Dollar market today - Amassing over USD2.3bn demand, KBN upsized the deal and tightened pricing 2bps from IPTs, in spite of limited pricing concession and volatility in swap spreads. A testament to KBN’s strong recognition in the US Dollar market.”
Damien Carde, Managing Director, Head of FBG DCM at NatWest Markets
“Another excellent result for KBN with a 1.5bn print at fair value. The high quality book and lack of price sensitivity, despite volatile swap spreads, are testament to the broad global appeal of the KBN name. We are very proud to have been involved at NatWest Markets.”
Spencer Dove, Managing Director, Head of SSA DCM at Nomura
“KBN has completed the 2020 funding task with another blow out US$ benchmark, its fourth of a very successful year completing the USD grand slam of 3, 5 and 10-year benchmarks. The distribution was once again testament to the broad appeal of the KBN credit and consistent focus of the team in enfranchising the global investor base.”