Finland’s second syndicated benchmark bond of 2003 was a huge success, chalking up a number of notable records. In particular, the order book was built up to e12bn in a matter of hours, one of the most rapid bookbuilding periods ever.
When the pot was finally closed, 220 high-quality investors had subscribed to the issue. The entire process from the announcement of price guidance through to bookbuilding, allocation and pricing lasted just 30 hours.
Also notable was the fact that this was the first syndicated eurozone government bond to be priced through the traditional German government benchmark. The transaction was priced at a re-offer spread of 7 basis points over the OBL 141, equivalent to 13 basis points through mid-swaps or 1 basis point below Germany on a curve-adjusted basis. In the immediate after-market, the issue tightened to 6.5 basis points over the OBL.
