Danske wraps up 2014 funding in Eu1bn FRN

Danske Bank sold a Eu1bn four year senior unsecured floating rate note at Euribor plus 38bp on Wednesday of last week (12 November) to complete its funding target for 2014.

The Danish bank published its third quarter results on 30 October and, according to bankers at the leads, moved to take advantage of the prevailing benign market conditions and launched the new issue ahead of other potential supply.

Leads BNP Paribas, Credit Suisse, Danske, HSBC and Société Générale went out with IPTs of three month Euribor plus the low 40s, which compared with a level of 24bp for a three year FRN Danske launched in May. Guidance was set at the plus 40bp area on the back of Eu1.2bn of demand, and the re-offer at 38bp after a total Eu1.8bn of orders were placed. A lead banker said this reflected a 3bp-4bp new issue premium.

He said that the four year maturity was chosen as it fitted the issuer’s maturity profile, and it is now Danske’s longest outstanding senior bond.