Hansabank proves benefit of EU accession

A bond issue by Baltic bank Hansabank has served as a demonstration to corporates and banks alike that EU accession brings cheaper funding.

The bank’s issue of ?750 million ($924 million) in floating-rate notes this week priced at 26 basis points over three-month Euribor. Compare this to its only outstanding bond issue, a similarly structured March 2006 note, which priced at 55 basis points over Euribor at the beginning of 2003. Today that note is trading at around 18 basis points over Euribor.