Italian industrial group Fiat SpA is looking to launch a 500-million euro-denominated 5-year issue in the near future. The bond may arrive as a fixed rate transaction, giving the borrower more of an opportunity to attract a retail investor base.
Fiat generally prefers to issue fixed rate offerings.
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Bankers not involved in the deal were hearing price talk at Euribor plus 50 basis points at reoffer on Wednesday. At this level one banker said the issuer would have little difficulty raising an amount of up to 750 million euros.
Deutsche Bank, Mediobanca and UBS Warburg are currently tipped as frontrunners to hold the mandate on the issue, which is expected to launch towards the end of next week. Members of the suggested triumvirate declined to comment on the market murmurs.
