Bond Buyers Move on After Santander Shock
- Handelsbanken gets $4.5 billion of orders for AT1 offering
- Notes to yield 6.25 percent, inside initial target
Photographer: Heidi Wideroe/Bloomberg
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Bond buyers have quickly moved on from Banco Santander SA’s surprise decision to skip the first call on a contingent-convertible note.
Svenska Handelsbanken AB amassed more than $4.5 billion of bids as it became the first bank to offer new CoCos since Santander rattled markets a couple of days ago. The Swedish lender will price the $500 million of perpetual Additional Tier 1 notes callable in five years to yield 6.25 percent, inside an initial target of about 6.75 percent, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified.