Euroweek

Euro FRNS.(International Bond Issues)

* BES Finance Ltd

Guarantor: Banco Espirito Santo SA

Rating: A1/A-/A

Amount: Eu600m

Maturity: February 12, 2009

Issue price: 99.911

Coupon: three month Euribor plus 15bp

Spread at launch: three month Euribor plus 19bp

Launched: Wednesday January 28

Joint leads: Credit Agricole/Credit Lyonnais (books), Lehman Brothers (books), BES Investimento

Bookrunner's comment:

CA/CL--BES is a well recognised entity in the market and is one of the biggest Portuguese names.

We opened the book, with Lehman Brothers, with a spread of the 19bp area.

We found good momentum in the market and attracted around 40 accounts in to the book, which was impressive.

The UK and Ireland took 33%, Iberia took 24%, Germany took 19% and Asia took 10%, which is one of the best achievements in this deal. That was from Tokyo more than Hong Kong or Singapore.

To sell 10% into Asia is a good achievement for BES.

The all-in was 20bp over. We closed the book slightly shy of Eu600m, so we had a slightly long position at the launch.

They are trading around 20bp in the market. So we are very happy. The quality of the accounts coming in clearly shows that it was a good deal.

Lehman--The bonds cleared between 19bp and 20bp over. Lehman and Credit Agricole were joint leads. BES was joint lead no books.

We announced the trade on Monday morning, with pricing slated for Wednesday, and began bookbuilding immediately. By the end of the first day we had Eu250m-Eu300m in demand, by Tuesday Eu500m, and we priced on Wednesday just after lunch being slightly under Eu600m. …

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