August 28, 2018 / 3:51 PM / in 8 months

UPDATE 1-Finland's benchmark bond issue attracts strong demand

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HELSINKI, Aug 28 (Reuters) - Finland’s benchmark bond issue attracted strong demand on Tuesday despite its historically low yield, the state treasury said.

It sold 3 billion euros in a 2028 bond, attracting an order book of about 13 billion euros from around 120 investors.

The debt was priced at 28 basis points below the euro swap curve. It has a coupon of 0.5 percent and a yield of 0.624 percent.

“The strong demand was a positive surprise in a situation where the European Central Bank is getting ready to end its monetary stimulus,” Deputy Director Anu Sammallahti from the state treasury said. Earlier this month, Fitch maintained its AA+ credit rating for the Nordic country but revised its outlook to positive from stable. Similarly, Finland has an AA+ rating from Standard & Poor’s and Aa1 from Moody’s, with a stable outlook from both. The issue was lead managed by Bank of America Merrill Lynch, Barclays Capital, Credit Agricole CIB, Goldman Sachs and Natwest Markets. (Reporting by Anne Kauranen and Jussi Rosendahl; editing by Niklas Pollard, Richard Balmforth)

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