The new BNP bond is a senior non-preferred bail-in bond
which sits below covered bonds and senior preferred bonds but
above subordinated debt, including AT1.
"This deal shows that a strong name was needed to reopen the
market, and that there is sufficient demand for this type of
bond," said Joost Beaumont, head of bank research at ABN Amro.
Demand for the new eight-year green bond exceeded 1.85
billion euros and the bond priced with a yield of 4.358%,
according to the memo.
"The deal acts as an important milestone for bank
funding markets," ING credit strategists wrote in a note. "The
green format provides more support for the deal in the uncertain
market backdrop."
($1 = 0.9179 euros)
(Reporting by Chiara Elisei; editing by Dhara Ranasinghe)
(Adds context and comments in paras 3, 4 and 5)
LONDON, April 4 (Reuters) - BNP Paribas raised 1 billion
euros ($1.09 billion) from selling a senior unsecured bond on
Tuesday, a lead manager memo seen by Reuters showed, in the
first sale of such debt since the forced Credit Suisse-UBS
merger roiled the market for bank bonds.
While there have already been some covered bond sales
from banks, the transaction marks the first senior unsecured
bond sale following upheaval in March after Credit Suisse
Additional Tier 1 (AT1) bond holders were wiped out as part of a
rescue by UBS.
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