Novobanco pulls in €750M bond, with demand topping €1.5B
What's the deal? Novobanco has issued €750 million of four-year covered bonds, in a deal that drew demand above €1.5 billion. The Portuguese bank, owned by France's BPCE group and led by chief executive officer Mark Bourke, priced the notes at about 3.62%.
The terms: Novobanco will pay midswaps plus 33 basis points, tighter than earlier guidance of 37 basis points. BloombergDealroom has a profile for this one. Try Dealroom → first reported the transaction; ECO confirmed the final terms. Barclays, BMODealroom has a profile for this one. Try Dealroom →, DZ BankDealroom has a profile for this one. Try Dealroom →, IMI-Intesa SanpaoloDealroom has a profile for this one. Try Dealroom →, LBBWDealroom has a profile for this one. Try Dealroom →, and NatixisDealroom has a profile for this one. Try Dealroom → acted as bookrunners.
Why now? The sale extends a steady return to public debt markets. Novobanco raised €500 million through a senior preferred bond in January 2025 and €500 million through a covered bond in 2024, helping it diversify funding and meet regulatory requirements.
The numbers: Earlier this week, the bank reported a profit of €585.6 million for the first nine months of the year, down 4.1% from a year earlier. The drop reflects an added cost tied to its sale to BPCE, which closed at the end of April.
The signal: The oversubscribed deal points to continued investor appetite for Portuguese bank debt. Among debt rounds by fintechs in Portugal, the size ranks in the top 5% all-time — sizeable, but routine wholesale funding for a bank now backed by a larger European parent.
Read more: econews.pt
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