CDB Prices Shorter FRN

The Caribbean Development Bank has priced a $175m 2-year FRN at Libor+30bp, coming with a smaller size and shorter tenor than initially expected. The borrower had been showing investors a $200m 5-year floating rate note. Some accounts simply did not like the floating rate structure and the L+30bp pricing. “It is just not very sexy at L+30bp with little or no prospects for a meaningful Fed rate increase over the next 2 years,” said one buyside analyst. The borrower had considered a fixed-rate issue but preferred floating rates to match its lending portfolio. BNP Paribas acted as lead.