CAF Delays Euro Bond

CAF has delayed issuance of its euro-denominated bond with no indication of when it may come to market. Investors said volatile trading on news of a possible Ireland bail-out is affecting several issuers this week. CAF began investor meetings in Europe Monday. Investors say there is no official news on the bond, though they were expecting a size similar to or slightly larger than its October Swiss franc sale ($260m equivalent), at perhaps at a 5-7-year maturity. Bankers on the deal say a transaction is still likely. “They price tighter than 2 years ago, but it is a high quality credit that shouldn’t have a big problem issuing,” says a Switzerland-based investor. BNP and HSBC managed the investor meetings. CAF priced CHF250m in 2.625% 2015 bonds last month in the Swiss market at a 2.650% yield. It sold EUR100m in 2015 floating-rate bonds in February through Goldman Sachs, according to Dealogic, its first euro-denominated deal since a EUR300m 2006 offer. CAF is rated A1/A+.