Belgium five years bond's spread fixed

LONDON: The Kingdom of Belgium, rated Aa3/AA/AA, has fixed the spread on its new five-year euro bond at mid-swaps plus 16bp, as orders top EUR6.5bn, said a market source close to the deal.

The source expected the final size to be fixed at EUR5bn but said that this had not been confirmed by the Belgian debt agency.

Books opened on Tuesday morning with official guidance set at mid-swaps plus 18bp area, in line with initial talk released on Monday at mid-swaps plus high teens. As orders topped EUR5bn guidance was refined to mid-swaps plus 16/18bp.

Lead banks Credit Agricole, HSBC, ING and KBC will price the June 2018 bond, OLO 69, later on Tuesday.

Fair value on the new debt sale is mid-swaps plus 13bp, indicating that investors are being offered a 3bp concession to buy the new bonds.