Largest ever benchmark bond for Eksportfinans

Today, Eksportfinans has priced a successful 5 year Eurobond of EUR 1 billion. The issue date is April 16, 2003 with maturity on April 16, 2008. Credit Suisse First Boston and Nomura are lead managers for the transaction, which is Eksportfinans’ first Benchmark bond in 2003.

Today, Eksportfinans has priced a successful 5 year Eurobond of EUR 1 billion. The issue date is April 16, 2003 with maturity on April 16, 2008. Credit Suisse First Boston and Nomura are lead managers for the transaction, which is Eksportfinans’ first Benchmark bond in 2003.
This is the largest single funding transaction in Eksportfinans’ history, and is issued in Euro to satisfy investor preferences following a proactive price discovery process throughout the first quarter of 2003.


The deal was executed with full market transparency, and was launched after building a fully subscribed book. The issue price is 99.37, and the bond carries a coupon of 3.50%. This results in a spread of 19.5 basispoints over the 5 year German government bond (OBL 141).
In addition to the joint bookrunners CSFB and Nomura, the bond was syndicated with ABN AMRO, BNP Paribas, Citigroup, Daiwa, Deutsche Bank, Fortis Bank, Merrill Lynch, Mizuho, Royal Bank of Canada and Union Bank of Switzerland.


The transaction was well received in the market, and illustrates that Eksportfinans’ strategy to continuously foster strong and long-term relationships with investors has been a success. Also, it ensures good secondary market performance through high quality primary distribution. As was the case with the 5-year USD 750 million Benchmark issued in October 2002, Asian and European central banks account for a very large part of the loan. Many of the investors are the same as for the previous Benchmark transaction.
 
The President and CEO of Eksportfinans, Tor F. Johansen comments on the deal:
– Once again our Benchmark delivered as intended. We are very pleased to see the excellent distribution and the very high degree of loyalty from previous investors.


Due to Eksportfinans’ steady growth as well as increased redemptions in coming years, the institution maintains its strategy as a recurring borrower of Benchmarks, at the same time as public issuance in non-benchmark format as well as structured EMTN transactions are an important fundament to the funding programme. Eksportfinans’ long term borrowing requirements will amount to USD 3 – 3.5 billion in 2003.

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