Investor Presentaiton
THE GOVERNMENT
OF THE GRAND-DUCHY OF LUXEMBOURG
Ministry of Finance
LGB €2.0bn 10-year 3.375% 05/2020
7: DEBT MANAGEMENT
Issuer:
The Grand Duchy of Luxembourg
Issue ratings:
AAA/AAA (S&P / Fitch)
Size:
€ 2.0 billion
Launch date:
11 May 2010
Maturity:
18 May 2020
Coupon:
Reoffer yield:
Reoffer spread:
Governing Law:
Listing:
Denominations:
3.375%, annual, ACT/ACT
3.390%
MS +18bp (DBR 3.25% 1/20 +51.6bp)
Luxembourg Law
Luxembourg Stock Exchange
€1,000
Joint Lead Managers:
BCEE, BGL BNPP, BNPP, DEXIA CM
Distribution by geography
Deal summary
•
The mandated banks, sensing a turn in sentiment in the credit markets, gauged
investor sentiment for such a transaction and scouted likely timing and guidance at the
open. Investor response was very brisk as soon as the mandate announcement hit the
screens at 11 AM CET, confirming the right choice of product to reopen a market,
which while more balanced than in previous weeks, remains rather risk-wary, given
ongoing uncertainties.
• After rapidly assessing market conditions, books were officially opened at 13:00 CET
with a price guidance set at "Mid Swaps +20 area". Over EUR 1.5 bn in orders were
garnered by 14:30, breaching the EUR 2bn mark at 15:00 CET. Books closed at 15:30
with a final orderbook size of EUR 2.75bn and next to 120 high quality accounts
involved, allowing thus to set final terms for a EUR 2bn issue at MS +18 bps, inside the
initial guidance, while giving care for potential aftermarket performance.
• The final spread and transaction size testify to the huge popularity of Luxembourg's
signature, a rare credit that finally triggered renewed investor appetite for bestrated
transactions and thus reopened the EUR market.
•
In total, 115 investors participated in the transaction. Investor demand was spread
over 15 countries with a very strong support from Luxembourg domestic accounts
picking up 32% of the transaction.
Distribution by investor type
Investor Presentation, June 2013
I Luxembourg (31%)
France (19%)
Germany (15%)
■Belgium (10%)
■Switzerland (7%)
UK (5%)
Netherlands (3%)
Nordics (3%)
Asia (3%)
Italy (2%)
Other Europe (2%)
Banks (37%)
Asset Managers (29%)
Insurance/Pension (24%)
Central Banks (5%)
Corporates (5%)
29 of 40View entire presentation