Czech Eurobond ‘Paves Way’ for Others, Cheuvreux Says
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Romania and Ukraine will likely face “strong” demand for their planned Eurobond offerings after the Czech Republic raised euro-denominated debt in an oversubscribed issue, Credit Agricole Cheuvreux SA said.
The Czech sale of 2 billion euros ($2.56 billion) of bonds yesterday drew 5.3 billion euros in bids as planned deficit cuts and optimism about emerging-market debt sent the country’s borrowing costs below those in higher-rated Italy. It was priced to yield 105 basis points more than the benchmark mid-swap rate.