Portugal sets spread on tap of Oct 2022 and Feb 2045 bonds

LONDON: The Republic of Portugal has set the spread on a tap of its 2.2pc Oct 2022 at 242bp over mid-swaps and a 4.1pc Feb 2045 at 324bp over mid-swaps, according to a lead.

The combined order book is in excess of 3bn, including 565m of joint lead manager interest, the lead said.

The final spreads are in line with guidance of 242bp area and 324bp area respectively.

Earlier, the sovereign started marketing the deal with initial price thoughts of low 240s on the shorter tranche, which has 3bn outstanding, and low-to-mid 320s on the longer tranche, which has 2.5bn outstanding.

Pricing is expected on Wednesday via Barclays, Citigroup, Credit Agricole, JP Morgan, Nomura and Novo Banco.

Portugal is rated Ba1/BB+/BB+ (all stable).