In the world of sovereign issuers, the Republic of Finland is small but, as they say, perfectly formed. Such is the demand for its rare paper that it can now issue debt more cheaply than Germany.
It achieved that distinction for the first time last year, when it sold €5bn of five-year bonds with a coupon of 2.75%. And it recently did it again with €5bn worth of 11-year debt, paying 3.875%. After pricing, and on a curve-adjusted basis, that positioned Finland through the comparable trading levels of any other AAA euro sovereign you care to name. Joint bookrunners for the 11-year deal, which was increased from its original €4bn size, were Merrill Lynch, Barcap, BNP Paribas, Deutsche Bank and Nordea.
