Lebanon sets final guidance on US dollar triple-tranche deal
By Michael Turner
LONDON, Oct 30 (IFR) - Lebanon has set final price guidance on each tranche of its US dollar-denominated three-part bond, according to a lead.
The 2024 tranche is now being marketed at a yield of 6.30%, while the 2028 tranche is being offered to investors at 6.70%.
Finally, the 2035 tranche is being offered at 7.10%.
The yield on all tranches could move up or down by 5bp.
Final guidance compares to initial price thoughts of 6.20% to 6.35% on the short tranche, 6.60% to 6.75% on the 2028 tranche and 7.00% to 7.20% on the longest tranche, which were released on Thursday.
Aggregate demand for the deal has reached US$1.25bn. This includes interest from the banks running the trade and orders from Lebanon's Central Bank, which will be allocated US$500m of notes.
The new notes are part of a voluntary exchange for any-or-all of its US$750m 8.5% January 2016s.
Citigroup, Fransabank, Societe Generale de Banque au Liban and Standard Chartered Bank are running the deal. The transaction is expected to price on Friday.
Lebanon is rated B2 by Moody's, B- by Standard & Poor's and B by Fitch.
(Reporting by Michael Turner; editing by Sudip Roy)
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