GERMAN RETAILER METRO was all set to launch its
first European benchmark bond at the end of January, hoping to
take advantage of improving conditions in the European
corporate bond market since the beginning of the year. For
Metro, the world's fifth-largest retailer, bonds and euro
medium-term notes had previously made up less than a quarter
of its funding and its outstanding issues were much smaller,
largely domestic bonds that are illiquid. The rest of its
funding was split between bilateral bank lines, syndicated
loans and the money markets.
Metro has to refinance a Dm1.5 billion ($829 million)
convertible bond maturing in 2013. It expects investors to put back
to it in July this year, so banks had been pitching the idea of a
benchmark bond to open up its appeal to a much broader range of
investors. Duly, the company did a non-deal roadshow at the end of
last year and then felt confident...
