Deals
BAT Rides Coattails of Gilt Demand With Rare 40-Year Bond Offer
- Deal is Europe's longest-dated senior corporate bond this year
- Fund managers bought almost all bonds after supply shortage
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British American Tobacco Plc took advantage of untapped demand for long-maturity securities in pounds with the first 40-year corporate bond in Europe this year.
The maker of Lucky Strike and Pall Mall cigarettes got more than a billion pounds ($1.5 billion) of orders for its 350 million-pound bond on Nov. 18, according to a person familiar with the matter, who is not authorized to speak publicly and asked not to be identified. The U.K. got a record 21.8 billion pounds of orders for a 4.75 billion-pound 50-year bond last month as investors clamored for the debt.