USD MTNs: Wave of 15y to 20y ZCs; Callables pick up

Big wave 14 Dec 2020
;
ZCs saw six new notes ranging in 15y to 20y maturity and $20m to $100m in size, all non-Formosa. Callables see a pick up in activity.

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  • Wave of 15y to 20y ZCs; Callables pick up

  • Recent structured note activity

     

    Wave of 15y to 20y ZCs; Callables pick up

    A wave of zero-coupon callables surfaced in the past week, with six ZCs sold, all non-Formosa. The largest came from EBRD  - a $100m 20y NC5 ZC with an IRR of 4.595% while ADB, DZ Bank, United Overseas all came with $50m 20y NC5 ZCs with IRRs ranging from 4.69% to 4.89%. In addition, HSBC sold a $50m 19y NC6 (single call) with an IRR of 4.90%. Lastly, ING came with a $20m 15y NC3 with an IRR of 5.1288%.

     

    Meanwhile, in simple fixed callables, African Development Bank, Citigroup and Credit Agricole all launched $50m fixed callables in 3y to 5y maturity while JP Morgan was particularly active post its Q1 earnings release. To note, the Credit Agricole $50m 10y NC2 is a fixed callable Formosa (CORRECTS). 

     

     

    Recent structured note activity

     

    Zero-coupon callables and Formosas:

     

    • HSBC sold a $50m 19y NC6 zero coupon callable (non-Formosa). The EMTN matures Apr 2042, is callable Apr 2029 and has an estimated IRR of 4.90%. Self-led. Announced Apr 17.

       

    • Asian Development Bank (ADB) sold a $50m 20y NC5 zero coupon callable (non-Formosa). The GMTN matures Apr 2043, is callable annually from Apr 2028 and has an estimated IRR of 4.69%. Lead is JPM and announced Apr 14.

       

    • DZ Bank sold a $50m 20y NC5 zero coupon callable (non-Formosa). The GMTN matures Apr 2043, is callable every year from Apr 2028 and has an estimated IRR of 4.89%. Self-led. Announced Apr 14.

       

    • EBRD sold a $100m 20y NC5 zero coupon callable (non-Formosa). The GMTN matures Apr 2043, is callable every 2y from Apr 2028 and has an estimated IRR of 4.595%. Lead is Barclays and announced Apr 12.

       

    • ING sold a $20m 15y NC3 zero coupon callable (non-Formosa). The EMTN matures Apr 2038, is callable annually from Apr 2023 and has an estimated IRR of 5.1288%. Self-led and announced Apr 12.

       

    • United Overseas Bank sold a $50m 20y NC6 zero coupon callable (non-Formosa). The EMTN matures Apr 2043, is callable annually from Apr 2029 and has an estimated IRR of 4.79%. Self-led and announced Apr 11.

       

    • Credit Agricole is working on a self-led $50m fixed callable Formosa (CORRECTS) maturing May 2033 NC2 that pays 5.45%. EMTN.  

     

    Fixed, floating and step-up callables:

     

    • African Development Bank is working on a $50m fixed callable via WFS maturing Apr 2026 NC1 that pays 4.7%. GMTN.

       

      African Development Bank is working on a $25m fixed callable via WFS maturing Apr 2028 NC2 that pays 4.375%. GMTN.

       

    • Bank of Montreal is working on a self-led fixed callable maturing Apr 2026 NC6m that pays 5.5%. Domestic MTN.

       

      Bank of Montreal is working on a self-led fixed callable maturing Apr 2028 NC6m that pays 4.8%. CD format. Domestic.  

       

    • Barclays is working on a self-led $250m floating callable maturing Oct 2023 that pays O/N SOFR +22bps, callable and puttable Sep 2023. Private placement.

       

      Barclays is working on a self-led step-up callable maturing May 2043 NC5 that pays 5.05% to May 2028, 5.25% to May 2033, 6.5% to May 2038 and 7% thereafter. GMTN.

       

      Barclays is working on a self-led fixed callable maturing May 2024 NC6m that pays 5%. GMTN.

       

    • Citigroup is working on a $50m self-led fixed callable maturing Apr 2028 NC1 that pays 5.19%.  EMTN.

       

    • ING Bank is working on a $30m fixed callable maturing Apr 2028 NC1 that pays 5.33%. Lead N/A.  EMTN.  

       

      ING Bank is working on a $30m self-led fixed callable maturing Apr 2028 NC2 that pays 5.09%.  EMTN.

       

    • JP Morgan is working on a self-led $25m floating callable maturing Apr 2030 NC2 that pays O/N SOFR +100bps. EMTN.  

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2026 NC6m that pays 5.2%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2028 NC2 that pays 5.15%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2028 NC1 that pays 5.2%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2025 NC6m that pays 5.25%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2026 NC1 that pays 5.125%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2027 NC6m that pays 5.25%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing May 2024 NC6m that pays 5.15%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Oct 2024 callable Jan 2024 that pays 5.15%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2025 NC1 that pays 5.15%. Domestic MTN.

       

    • National Bank of Canada is working on a $9m fixed callable via KGI maturing Apr 2028 NC4 that pays 4.95%. EMTN.

       

      National Bank of Canada is working on a $9m fixed callable via KGI maturing Apr 2028 NC3 that pays 5.15%. EMTN.

       

    • Royal Bank of Canada is working on a self-led fixed callable maturing Apr 2033 NC2 that pays 5.5%. GMTN.

       

    • Santander International Products is working on a self-led fixed callable maturing Apr 2026 NC1 that pays 4.15%. EMTN.

       

    • Standard Chartered is working on a self-led fixed callable maturing Apr 2028 NC2 that pays 4.7%. EMTN.

       

    • Toronto Dominion is working on a self-led fixed callable maturing Apr 2028 NC3m that pays 5.25%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2025 NC6m that pays 5.4%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2028 NC1 that pays 5.65%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing May 2024 callable Jan 2024 that pays 5.3%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2028 NC1 that pays 5.35%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2027 NC6m that pays 5.65%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2026 NC1 that pays 5.45%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2024 NC3m that pays 5.4%. GMTN.

       

    • UBS is working on a self-led fixed callable maturing Apr 2025 NC6m that pays 5.3%. Domestic MTN.

       

      UBS is working on a self-led fixed callable maturing Apr 2024 NC6m that pays 5.05%. EMTN.

       

      UBS is working on a self-led step-up callable maturing Apr 2025 NC6m that pays 4.3% to Oct 2023, 4.55% to Apr 2024, 4.8% to Oct 2024 and 5.05% thereafter. Eurodollar.

       

      UBS is working on a self-led step-up callable maturing Apr 2024 NC6m that pays 4.6% to Oct 2023 and 4.61% thereafter. EMTN.

       

      UBS is working on a self-led fixed callable maturing Apr 2024 NC6m that pays 4.75%. EMTN.

       

      UBS is working on a self-led fixed callable maturing Apr 2024 NC6m that pays 5.06%. EMTN.

     

    Puttables:

     

    • National Bank of Canada is working on a self-led $15m FRN puttable maturing Oct 2031 NC3 that pays O/N SOFR +1.48%. Puttable Oct 2023. EMTN. 

     

    Extendibles:

     

    • Bank of Montreal is working on a self-led USD extendible with initial maturity Apr 2024 and then extendible to Apr 2026 that pays 5.2% to Apr 2024, then pays 5.3% and 5.4%, stepping up annually. Domestic MTN.

       

      Bank of Montreal is working on a self-led USD extendible with initial maturity Apr 2024 and then extendible to Apr 2026 that pays 5.4% to Apr 2024, then pays 5.5% and 5.6%, stepping up annually. Domestic MTN.

     

     
     
     
     

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