EAA Investor Relations

EAA begibt zweite Benchmark in 2016

Following a well received USD transaction in March this week’s EUR benchmark proved to be in demand even more.

The decision for an issue denominated in EUR had been affected by favourable market conditions and the strategic consideration to make use of such conditions to serve those investors who have to be focused on EUR. EAA emphasises a frequent presence in both major currencies of its portfolio, thus maintaining its broad investor base and at the same time reducing currency risk in accordance with its public mandate. The first benchmark in 2016 had been denominated in USD.

Preceding consultations with established and prospective investors proved the possibility of a successful transaction at this point in time.
Hence, June 1st 2016 was chosen for bringing a EUR benchmark with a 3 year maturity and a volume of 1.5 bn to the market. Despite the negative yield the interest of international investors turned out to be strong. Based on an initial price guidance of mid swap -5 the order book quickly exceeded 3.5 bn EUR and was subsequently closed again after less than 2 hours.
With a final spread of -7 the interest remained around 3.3 bn.
Amongst the investors, who in geographic terms mainly originated from Europe, there were 27 % official institutions. From other investor groups a high participation of newly acquired French accounts stood out.

The bond came with a zero coupon at a price of 100.623. Lead managers had been Bank of America; Deutsche Bank; DZ Bank; HSBC and UniCredit.