March 13, 2025 08:59 GMT
BCPPL - Tender & New Issue - €500m 12NC7 Tier 2 - FV
FINANCIALS
- IPT: MS+225
- FV: MS+ 195 - BCPPL 4% 2032 is 20bps wide of the CABKSM curve at the 1.5 year point - we extend that to 25bps at the 7 year mark over the CABKSM 4% 2037 at Z+180. We then subtract -10bps for the positive outlooks at Fitch and Moody's (only Moody's will rate this bond) and the likely compression effect if BCP were to be upgraded while it continues towards its 2028 plan - broadly on track as of Q4 results. We may have been tempted to go as low as +190 if risk sentiment were more positive today.
Exp. Ratings: Ba1/BBB-
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