Issuer: Republic of Finland
Amount: €525 million
Launched: 15 December
Lead manager: HSBC Markets,Merrill Lynch, Paribas
Christmas activity in the Eurobond markets is a rarity in itself. To have a minor war break out between the lead managers and the syndicate is especially unseasonal. The ill-will generated by the Finland deal shows how keen banks are, at the start of the euro bond market, to preserve any proprietary distribution strength in their home markets from foreign competition.
To add a twist of irony, the conflict was the direct result of the lead managers and the issuer trying to manufacture a water-tight deal to avoid orders doubling up and creating a false impression of demand in a tricky market on the eve of the euro launch
Together the leads and the issuer - led by director of funding Satu Huber - decided to run a two-tier issue: HSBC, Merrill...
