(Adds banker comments)
By Laura Benitez
LONDON, May 17 (IFR) - Apple is the latest borrower to take
advantage of strong market conditions in Europe, lining up a
euro-denominated dual-tranche benchmark on Wednesday.
"The market is in super-good shape following the French
election, demand for recent deals has been so strong and it
still feels like investors want more paper," said a lead.
Corporates have raised €23.2bn in the single currency since
centrist Macron was elected president in early May, removing the
political risk that had been hanging over the market.
The iPhone maker is marketing a dual-tranche senior trade
split between an eight-year at mid-swaps plus 45/50bp and a
12-year at swaps plus 60/65bp.
Supply has been further helped by the ECB's corporate
purchase programme, which started last June and has removed
almost €85bn of paper from the market.
"Apple is a very large borrower and has big ambitions
regarding shareholder returns, which is what the bonds are
typically used for," the banker said.
"It still has a lot of appeal due to it still being a
relatively rare name."
However, another banker warned that the glut of supply seen
in the corporate market this week could start to hinder the
performance of new issues.
"The market is a little heavier and slower, supply is not
trading up in secondary markets, and we will start to see an
impact. Let's see how today's deals go," he said.
"If we have to adjust price expectations for these companies
then that's what we have to do."
Apple was last in the European market in September 2015 when
it sold a €2bn dual-tranche deal.
Apple is one of six companies tapping the European market on
Wednesday, adding to a host of jumbo multi-tranche deals from
blue-chip names that have already printed this week.
Investment-grade corporates have printed over €10bn so far
Apple, rated Aa1/AA+ (both stable), mandated Goldman Sachs,
Barclays and Deutsche Bank as bookrunners.
(Reporting by Laura Benitez; editing by Helene Durand, Julian