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British American Tobacco (BATSLN; Baa2 Pos, BBB+ S, BBB+ S)

CONSUMER STAPLES

Final Terms are +150 on €900m 8Y.

  • NIC is 20bps to our FV at +130, priced 5bps wide of Altria/MO curve.
  • 35bps of tightening from IPT with books a milder >3.3b/less than 4* covered.
  • JAPTOB has set a reassuring precedent after quickly traded away its 13bp NIC after pricing wide to PM on reported secondary demand/buying.

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