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BNP Paribas turns to Singapore dollars for Tier 2 capital
[SINGAPORE] French lender BNP Paribas is marketing Basel III-compliant Tier 2 Singapore dollar bonds at a price guidance in the 4.5 per cent area.
The offering follows counterpart BPCE's S$150 million 4.45 per cent 10.5-year non-call 5.5 bonds sold in June. The BPCE notes, which will be used as a reference, are now indicated at around 4.4 per cent. This means BNP is offering a marginal premium at guidance.
The latest T2 notes are expected to score Baa2/BBB, below the issuer's ratings of A1/A+.
BNP, OCBC and UOB are joint lead managers and bookrunners for the issue, which is expected to price today.