Portuguese Bank Millennium BCP Completes Bond Sale Despite Boycott

Millennium BCP, Portugal’s largest listed bank, has successfully completed the first issue of subordinated Tier 2 notes by a Portuguese lender since the eurozone sovereign debt crisis, despite a boycott of the offer by some of the world’s leading fixed-income investors, the Financial Times reported. BCP, which priced the 10-year medium-term notes on Wednesday, said the €300m issue attracted orders for three times that amount from a wide range of mainly European institutional investors. The notes were priced at an interest rate of 4.5 per cent for the first five years. BCP said the strong demand reflected confidence in the bank’s restructuring efforts and its capacity to tap international capital markets. A group of six influential fund managers, including BlackRock and Pimco, refused to take part in the offer because of a long-running battle with Portugal’s central bank over losses sustained on their bond holdings in another Portuguese lender, Novo Banco, in 2015. Read more. (Subscription required.)