New parameters were not the preserve of the SSA market: European FIG was battered not only by sovereign distress but also by grinding regulatory uncertainty throughout the year. Rabobank’s $2 billion 8.4% perpetual non-call tier 1 issue in early November was an answer to both.
Sid Prasad, head of EMEA FIG global finance at Nomura in London, says:
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"Events in the European sovereign space dictated overall market sentiment. We were exposed to the elements. Sentiment started to turn particularly fragile late on Monday with news of MF Global’s demise and other macro events. Over the course of the next two days, the Euro Stoxx 50 index fell 8.4%, the financial sub-index widened by 92 basis points and Rabo’s January deal widened 75bp. We saw some attrition in the order book from institutional accounts, but the overall book continued to see a steady increase. In the end we built a very granular book with minimal order inflation – people put in for what they wanted."
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For full details and the story behind this deal, click here
- Euromoney Skew Blog
