By Art Patnaude
Belgian lender Belfius Bank, formerly Dexia Bank Belgium, Monday
is planning to sell a 500 million euro ($665.9 million), 10-year
covered bond, a bank running the deal said.
Price guidance was set in the mid- to high-40s basis points over
the midswap rate.
Standard and Poor's and Fitch Ratings are expected to assign
triple-A ratings to the debt.
Covered bonds are backed by a pool of highly rated assets,
typically residential mortgages or public-sector loans. This type
of debt remains on the issuer's balance sheet, meaning investors
also have recourse to the bank should it default on the bond.
Belfius, Credit Suisse, JP Morgan, Natixis and Unicredit were
lead managers of the deal.
Write to Art Patnaude at art.patnaude@dowjones.com