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Barclays launches USD2bn AT1 dollar bond

Anthony Rodriguez
Wednesday, 13 Nov 2013 | 11:38 AM ET

Nov 13 (IFR) - Barclays on Wednesday launched its US$2 billion Additional Tier 1 contingent capital (CoCo) bond at 8.25%, which was at the wider end of expectations for the high-risk trade.

The UK lender was heard to have amassed some US$10 billion in orders for the deal, which is perpetual but callable in five years. It began testing interest in the low 8% area Tuesday.

Despite the quantity of orders, some US accounts expressed concerns that a frothy book could impact secondary performance, after the UK lender failed to revise guidance downwards.

"I'm wavering back and forth, wondering whether I should stay in this deal," said one US investor. "I don't know how it will trade - US$10 billion sometimes means just US$4 billion and the rest is fluff."

Barclays' own syndicate team, along with Citi, Deutsche Bank, Goldman Sachs, SMBC Nikko, UBS and Wells Fargo are managing the SEC-registered offering, which is expected to price later today.

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