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BlackRock said to debut euro bonds as low costs lure US sales

Tuesday, April 28, 2015 - 17:05
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BlackRock Inc, the world's biggest money manager, is selling its first euro-denominated bonds.

[LONDON] BlackRock Inc, the world's biggest money manager, is selling its first euro-denominated bonds.

The company is marketing 10-year notes that may be priced to yield 85 basis points more than benchmark rates, according to a person familiar with the matter, who asked not to be identified because they're not authorised to speak publicly.

European Central Bank measures to stimulate the economy are helping to lower the cost of issuing bonds in the single currency. The average yield investors demand to hold investment- grade debt plunged to a record-low 0.85 per cent March 10 and was at 0.91 per cent Monday, according to Bank of America Merrill Lynch indexes. Historic-low rates have lured buyers including Coca-Cola Co and Berkshire Hathaway Inc. as well as China's Sinopec Group.

BlackRock officials in London couldn't immediately comment on the sale when contacted by phone.

The average yield premium over benchmark rates investors demand to hold high-grade debt in euros was 69 basis points Monday, Bank of America Merrill Lynch data show. That compares with a spread of 132 basis points for similar bonds in dollars.

BLOOMBERG

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