AT&T, Ocado Defy U.K. Political Risks to Sell Sterling Bonds
- Deals are first in sterling debt market since U.K. election
- Long tenor on AT&T bonds invite 20-year sterling exposure
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The pall of uncertainty hanging over the U.K. economy in the wake of last week’s election hasn’t shut the sterling bond market.
U.K. online grocer Ocado Group Plc and U.S. communications company AT&T Inc. are both selling sterling bonds on Wednesday, the first deals in the currency since the June 8 vote. AT&T’s 1 billion pound ($1.27 billion) offering of notes due in 2037 is also the longest tenor on a sterling corporate bond in a month, suggesting the company expects investors will be comfortable with long-term exposure to the U.K.