USD New Issues: 2023 Kicks off with a big, loud bang

Large explosion
;
The opening week of IG issuance for 2023 kicked off with a big, loud bang as a total of $58bn priced versus an expected volume of just $35-$40bn.

Start a free trial to read this article

Join today to access all  Total Derivatives content and breaking news. Already a subscriber? Please Log In to continue reading.

Or contact our Sales Team to discuss subscription options.

Get in Touch
Blurred image of Total Derivatives article content

 

  • 2023 Kicks off with a big, loud bang

  • New issues

  • Recent issues

     

    2023 Kicks off with a big, loud bang  

    The opening week of IG issuance for 2023 kicked off with a big, loud bang as a total of $58bn priced last week (ex. SSA) versus an expected volume of just $35-$40bn.  Much of this issuance was front-loaded as 19 issuers printed just over $34bn last Monday alone – the largest coming Sumitomo Mitsui’s $5.8bn 4-part, followed by a $5bn 4-part senior non-preferred from SocGen.

     

    Week over week, IG corporate spreads widened 2bps to 140bps while high yield spreads narrowed 32bps to 447bps, according to the ICE BofA Masters Indexes.

     

    For the upcoming first full-week of the year, initial surveys expect roughly $30-$35bn – once again likely compressed into the first few sessions before the December CPI data hits the tape on Thursday.

     

    New issues

     

    • Philippines is working on a 3-part 5.5y, 10.5y and 25y sustainable benchmark via BofA, DB, BS, HSBC, StanChart and UBS.  Baa2/BBB+/BBB.  Price talk: +105bps, +145bps, 5.5%.

       

    • AIIB is working on t 5y sustainable benchmark via BMO, HSBC, JPM and TD.  Aaa/AAA/AAA.  Price talk; MS + 65bps area.

       

    • KfW is working on a 5y benchmark via BofA, Citi and RBC.  Aaa/AAA.  Price talk: MS + 42bps area.

       

    • Air Lease is working on a $500m 5y deal via Citi, FITB, RBC, Santander and Lloyds.  BBB/BBB.  Price talk: +215-220bps area.

       

    • Sun Communities is working on a $300m 10y deal via Citi, BofA and JPM.  Baa3.  Price talk: +250bps area.

       

    • BNP Paribas is working on a self-led 6NC5 benchmark.  Aa3/A+/AA-.  Price talk: +175bps area.

       

    • National Bank of Canada is working on a 2y fixed/FRN benchmark via Citi, NBCFM, GS, JPM and RBC.  A3/BBB+/A+.   +130bps area, SOFR equivalent.

       

    • Toyota Motor Credit plans a four-tranche USD benchmark bond issue including a 2y fixed at around +85bps, a 2y FRN at equivalent, a 5y fixed at +130bps and a 10y at +155bps. Via BofA, Barclays, Citi, Mizuho and Santander.

       

    • RBC plans a four-tranche benchmark USD issue including a 3y fixed at +1115vbps, a 3y FRN at SOFR equivalent, a 5y at +145bps and a 10y at +175bps.

       

    • Wisconsin-based electric motors company Regal Rexnord is close to pricing a four-part benchmark USD deal including a 3y at around +245bps, a 5y at +270bps, a 7y at +300bps and a 10y at +320bps. Via BofA, UBS and JPM.

       

    • CaixaBank plans a benchmark 6yNC5 Senior Non-preferred benchmark bond. Barclays, BofA, BNPP, Caixa, JPM and MS are arranging investor calls.

       

    • Dell International plans a 5y and 10y USD benchmark at ++190 and +250bps respectively via Barclays, BofA, Goldman, JPM, MS and WFC.

       

    • Realty Income plans a 3yNC1 and 7y USD benchmark at +155 and +170bps respectively via BofA, Goldman, MS and WFS.

       

    • WEC Energy plans 3y and 5y benchmark bonds at +100bps and +130bps or so respectively via Barclays (B&D), JPM, MS and WFC.

       

    • Crown Castle plans a USD-denominated 5y benchmark at +160bps or so via BNPP, JPM, MUFC, PNC, RBC and TSI.   

       

    • Healthpeak Properties plans a $350m, 10y bond at USTs +200bps via BofA, PNC, Scotia, TSI and WFC.

       

    • POSCO has launched a $2bn, three-tranche bond issue including a $700m, 3y at +190bps, a $1bn 5y at +220bps and a $300m, 10y at +250bps. Via BNPP, Citi, Credit Agricole, HSBC and Standard Chartered.

     

     

    Recent issues

     

    • Jan 5: Bank of Montreal priced a $2,5bn 3-part ($1bn 2y fixed, $300m 2y FRN and $1.2bn 5y). Leads BMO, BofA, Citi, JPM and MS.  A2/A-/AA-.  +80bps, SOFR +71bps, +130bps.

       

    • Jan 5: Romania (Baa3/BBB-) priced a $3.75bn 3-part ($1bn 5y, $1.5bn 10y and $1.25bn 30y). Leads BNPP, HSBC (B&D), ING, RBI and UniCredit. +280bps, +350bps and +385bps.

       

    • Jan 5: Credit Agricole priced a 1.2bn 5.5y. Leads CA, GS, JPM, TorDom and WFS. Aa3/A+/AA-. +140bps.

       

    • Jan 5: HK Airport Authority (AA+) priced a $3bn 4-part ($500m 3y, $1bn 5y Green, $700m 7y and $800m 10y). Leads BofA, HSBC (B&D), JPM, StanChart and UBS. +70bps, +90bps, +115bps and +125bps.

       

    • Jan 5: ADB priced a $5.5bn 2-part ($3.5bn 3y and $2bn 10y). Leads Citi, Nomura, RBC and TorDom. Aaa/AAA/AAA. Swaps +29 and 60bps.

       

    • Jan 5: Penske Truck priced a $2bn 5y. Leads BofA, JPM, PNC, SMBC and WFC.  Baa2/BBB/BBB+.  +185bps.

       

    • Jan 5: IADB priced a $2bn 5y Global. Leads Barclays, BofA, HSBC and JPM.  Aaa/AAA. Swaps +41bps.

       

    • Jan 5: World Bank (IBRD) priced a $1.75bn 4y FRN. Leads BMO, Scotia and WFS. Aaa/AAA. SOFR +37bps.

       

    • Jan 4: Standard Chartered priced $2.5bn 2-part ($1bn 4y NC3 fixed and $1.5bn 6y NC5). Leads Barclays, DB, JPM (B&D), MS and StanChart. A3/BBB+/A. +205bps and +245bps. It dropped plans for a 4y NC3 FRN.

       

    • Jan 4: Credit Suisse priced a $3.75bn 2-part ($1.25bn 2y fixed and $2.5bn 5y).  Self-led.  A3/A-/BBB+. +370bps and +370bps. It dropped plans for a 2y FRN.

       

    • Jan 4: National Australia Bank priced a $3.5bn 3-part sub bond ($1.15bn 3y fixed, $1.1bn 5y and $1.25bn 10y).  Leads BofA, Citi, GS, MS and NAB. Aa3/AA-/A+. +85bps, +110bps and +275bps, respectively. It dropped plans for a 3y FRN.

       

    • Jan 4: Rabobank priced a $1bn 2y senior preferred fixed. Leads Barclays, JPM, MS, Rabo and RBC. Aa2/A+/AA-. +65bps. It dropped plans for a 2y FRN.

       

    • Jan 4: GM Financial priced a $1.5bn 2-part ($1bn 5y and $500m 10y). Leads BofA, Barclays, BBVA, Commerzbank, DB and GS. Baa3/BBB/BBB-. +215bps and +275bps.

       

    • Jan 4: Pacific Gas & Electric priced a $1.5bn 2-part ($750m 10y FMB and $750m 30y FMB). Leads MUFG, Barclays, MIZ and WFS.  Baa3/BBB-/BBB-. +250bps and +295bps.

       

    • Jan 4: Jackson National Life priced a $300m 3y FA-backed. Leads DB, JPM, MS and USB.  A2/A/A.  +145bps.

       

    • Jan 4: Nomura Holdings priced a $1.9bn 3-part ($600m 3y, $550m 5y and $750m 10y). Leads BofA and Nomura (B&D). Baa1/BBB+. +160bps, +200bps and +250bps respectively.

       

    • Jan 4: Danske Bank priced a $1.25bn 3y NC2 SNP. Leads BofA, Citi, Danske, JPM, RBC and UBS.  Baa2/BBB+/A.  +210bps.

       

    • Jan 4: Equitable Holdings priced a $500m 10y. Leads BNPP, Citi and JPM.  Baa1/BBB+. +190bps.

       

    • Jan 4: Indonesia priced a $3bn 3-part ($1bn 5y, $1.25bn 10y and $750m 30y). Leads BofA, DBS, HSBC (B&D), Mandiri and StanChart. Baa2/BBB/BBB. 4.8%, 5.1% and 5.75%.

       

    • Jan 4: Kexim priced a $3.5bn 3-part ($1bn 3y, $1.5bn 5y and a $1bn 10y blue bond). Leads ANZ, BNPP, BofA (B&D), Citi, HSBC, KB and MS. Aa2/AA/AA-. +85bps, +120bps and 145bps, respectively.

       

    • Jan 4: New York Life priced a $1bn FA backed. Leads BofA, DRXHAM, GS and JPM. Aaa/AA+/AAA. +100ps.

       

    • Jan 4: PACCAR Financial priced a $300m 5y. Leads  BofA, JPM, SMBC and UBS.  A1/A+.  +78bps.

       

    • Jan 4: Hungary (Baa2/BBB) priced a $4.25bn 3-part ($1.5bn 5y, $1.5bn 10y and $1.25bn 30y). Leads BNPP, Citi, DB, GS and JPM (B&D). +240bps, +280bps and +325bps, respectively.

       

    • Jan 4: Public Service Co of New Hampshire priced a $300m 30y FMB. Leads  Barclays, GS, PNC and RBC.  A1/A+/A+.  +133bps.

       

    • Jan 4: Hong Kong priced a $3bn 4-part green bond ($500m 3y, $1bn 5y, $1bn 10y and $500m 30y). Leads Credit Agricole, HSBC, Citi, JPM, BNPP, BofA, MS and UBS.  AA+/AA-.  +35bps, +70bps, +95bps, +145bps.

       

    • Jan 4: EIB priced a $5bn Global via Barclays, Citi and TD at swaps +39bps.

       

    • Jan 3: TD Bank priced a $2bn 2-part ($750m 3y and $1.25bn 5y). Self-led. A1/A. +95bps and +125bps. It dropped plans for a 3y FRN.

       

    • Jan 3: SMFG priced a $5.8bn 5-part ($1.5bn 3y fixed, $300m 3y FRN, $1.5bn 5y, $1bn 7y and $1.5bn 10y). Self-led. A1/A-. +130bps. SOFR +143bps, +160bps, +185bps and +200bps.

       

    • Jan 3: Societe Generale priced a $5bn 4-part SNP ($1.25bn 4y NC3 fixed to fixed, 6y NC5 fixed to fixed, $1.5bn 11y NC10 fixed to fixed, $1bn 30y sub fixed). Self-led. Baa2/BBB/A- for first 3 tranches and Baa3/BBB-/BBB for the 30y. +230bps, +255bps, +295bps, +350bps. It dropped plans for a 4y NC3 FRN. All SNPs – senior non-preferred.

       

    • Jan 3: UBS Group priced a $4bn 2-part ($1.75bn 4y NC3 and $2.25bn 11y NC10). Self-led. A-/A+. +155bps and +220bp.  

       

    • Jan 3: MetLife priced a $2.15bn 4-part FA-backed ($650m 3y, $500m 5y and $1bn 31y). Leads BofA, DB, HSBC, JPM and MS. Aa3/AA-/AA- for first two tranches and A3/A-/A- for 31y. +83bps, +113bps and +140bps. It dropped plans for a 3y FRN. 

       

    • John Deere Capital priced a $2.3bn 2-part ($1.2bn 3y fixed and $1.1bn 5y). Leads DB, BofA, GS, RBC. A2/A. +65bps and +85bps. It dropped plans for a 3y FRN.

       

    • Jan 3: Caterpillar Financial priced a $900m 3y fixed. Leads Barclays, JPM, SocGen. A2/A/A. +63bps. It dropped plans for a 3y FRN.

       

    • Jan 3: Ford Motor Credit priced a $2.75bn 3-part ($1.3bn 3y fixed, $300m 3y FRN and $1.15bn 7y). Leads DB, BofA, HSBC, Mizuho and RBCCM. Ba2/BB+/BB+. 7%, SOFR +295bps and 7.375%. 

       

    • Jan 3: Commonwealth Bank of Australia priced a $1.5bn 2-part ($1.2bn 2y fixed and $300m 2y FRN. Leads CBA, HSBC, JPM, WFS. Aa3/AA-/A+. +68bps and SOFR +63bps.

       

    • Jan 3: Duke Energy Carolinas priced a $1.8bn 2-part ($900m 10y and $900m 30y). Leads MUFG, CS, JPM, Mizuho, RBCCM, WFS. Aa3/A. +120bps and +145bps. 

       

    • Jan 3: Santander UK priced a $1.25bn 6y NC5 fixed to FRN. Self-led. Baa1/BBB/A. +260bps. 

       

    • Jan 3: Entergy Arkansas priced a $425m 10y FMB fixed. Leads JPM, Mizuho, SMBC, Steph and USB. A2/A. +140bps.

       

    • Jan 3: Targa Resources priced a $1.75bn 2-part ($900m long 10y fixed and $850m 30y fixed). Leads MUFG, RBCCM, TD and TSI. Baa3/BBB-/BBB-. +235bps and +275bps.  

       

    • Jan 3: United Mexican States priced a $4bn 2-part ($1.25bn 5y and $2.75bn 12y). Leads BBVA, BNPP, BofA and JPM. Baa2/BBB/BBB-. +150bps and +260bps. 

       

    • Jan 3: Consumers Energy priced a $425m 5y FMB fixed. Leads GS, MS, RBCCM, WFC. A1/A/A+. +75bps.

       

    • Jan 3: Public Service Co. of Oklahoma priced a $475m 10y. Leads WFS, CIBC, CACIB and TSI. Baa1/A-/A-. +150bps.

       

    • Jan 3: Protective Life priced an upsized $600m 3y FA backed fixed. Leads Mizuho, MS and PNC. A1/AA-/AA-. +118bps. Upsized from $300m.  

       

    • Jan 3: Enterprise Products Operating priced a $1.75bn 2-part ($750m 3y and $1bn 10y). Leads BofA, JPM, MS and RBC. Baa1/BBB+/BBB+. +90bps and +160bps.

       

    • Jan 3: Commonwealth Edison priced a $975m 2-part ($400m 10y and $575m 30y). Leads USB, BofA and BNPP. A1/A/A. +115bps and +140bps. 

       

    • Jan 3: Oklahoma Gas and Electric priced a $450m 10y. Leads MUFG, JPM and USB. A3/A-/A.  +165bps. 

       

    • Jan 3: Connecticut Power and Light priced a $500m 30y FMB fixed. Leads MUFG, Barclays, Citi, GS and TD. A1/A+/A+. +135bps. 

     

     

     
     
     
     
     
     
     
     
     
     

    • Related Topics

    Most Popular