Czech Republic sells EUR 750mn 10-year Eurobond.

By bne IntelliNews October 2, 2012
The Czech Republic raised EUR 750mn through the placement of a 10-year Eurobond on October 1, Reuters reported. The bond was a reopening of an issue, initially offered in February 2012, when the country sold EUR 2bn of the 3.875% coupon bond. The bonds, due May 24, 2022, were priced at a spread of 116bp over mid-swaps, down from 160bp in February, a source close to the deal told Reuters. Demand for the paper topped EUR 1.6bn, the source said. The Czech Republic has already met its borrowing target for this year, but it chose to take advantage of the record low yields to raise funds for 2013. The Eurobond sale helped the country lock in low borrowing costs to hedge against any worsening of the debt crisis in the eurozone. The May 2022 Eurobond was quoted at a yield of 2.83%-2.77% on Oct 1, down by 110bp from March 1, while the domestic 10-year bond fell by 84bp during the same period to 2.39% -2.24%.

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