USD MTNs: More 20y ZCs; KDB FRN Formosa

Climber sunset 25 Mar 2021
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StanChart, Natixis and RBC sold $50m 20y ZCs (non-Formosa) while KDB sold a large 5y FRN Formosa. Bank fixed callable activity picked up.

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  • More 20y ZCs; KDB FRN Formosa

  • Recent structured note activity

     

    More 20y ZCs; KDB FRN Formosa

    Three zero-coupon callables – all $50m 20y and non-Formosa – sold in the past week from issuers Standard Chartered, Natixis and Royal Bank of Canada, all with longer initial call periods of 7y and 8y.

     

    In Formosas, Korea Development Bank sold an $300m 5y FRN that pays SOFR +90bps via lead SocGen Taipei. Also, Merrill Lynch sold a small self-led $25m a 10y FRN that pays O/N SOFR +145bps.

     

    Meanwhile, simple fixed, floating and step-up callable activity picked up with activity led by Royal Bank of Canada, Toronto Dominion and JP Morgan.  

     

     

    Recent structured note activity

     

    Zero-coupon callables and Formosas:

     

    • Standard Chartered sold a $50m 20y NC7 zero coupon callable (non-Formosa). The note matures Jul 2043, is callable from Jul 2030 and has an estimated IRR of 5.75%. Self-led and announced Jul 20. 

       

    • Natixis sold a $50m 20y NC8 zero coupon callable (non-Formosa). The EMTN matures Jul 2043, is callable from Jul 2031 and has an estimated IRR of 5.58%. Self-led and announced Jul 19.

       

    • Royal Bank of Canada sold a $50m 20y NC8 zero coupon callable (non-Formosa). The EMTN matures Jul 2043, is callable annually starting Jul 2031. Estimated IRR 5.77%. Self-led. Announced Jul 19.

       

    • Merrill Lynch sold a $25m floating rate Formosa. The EMTN matures Aug 2033 and pays O/N SOFR +145bps. Self-led. Announced Jul 20. Credit-linked.

       

    • Korea Development Bank sold an $300m 5y floating rate Formosa. The note matures Aug 2028 and pays SOFR +90bps. Lead is SocGen Taipei and announced Jul 18. 

     

    Rangers:

     

    • UBS is working on a self-led SOFR ranger maturing Aug 2024 NC1m that pays 6.5% as long as a given SOFR Index is between 5-6% to Aug 2023, then pays 6.5% as long as a given SOFR Index is between 4.5-6%. EMTN.

     

    Step-up, fixed and floating callables:

     

    • Bank of America is working on a self-led fixed callable maturing Jul 2035 NC18m that pays 5.5%.  Domestic MTN.   

       

    • Bank of Montreal is working on a self-led fixed callable maturing Jul 2025 NC6m that pays 5.75%. Domestic MTN.

       

      Bank of Montreal is working on a self-led fixed callable maturing Aug 2026 NC6m that pays 5.8%. Domestic MTN.

       

      Bank of Montreal is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 5.9%. Domestic MTN.

       

    • Barclays is working on a self-led fixed callable maturing Aug 2033 NC3 that pays 5.75%. GMTN.

       

      Barclays is working on a self-led fixed callable maturing Jul 2024 NC6m that pays 5.25%. EMTN.

       

    • BNP Paribas is working on a self-led fixed callable maturing Jul 2028 NC3 that pays 6.5%.  Credit linked to Louis Dreyfus Co. EMTN.

       

    • CIBC is working on a self-led fixed callable maturing Jul 2025 NC1 that pays 5.8%. Domestic MTN.

       

    • Citigroup is working on a self-led step-up callable maturing Jul 2026 NC1 that pays 5% to Jul 2024, 5.25% to Jul 2025 and 5.5% thereafter. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Jan 2025 NC6m that pays 5.6%.  Domestic MTN.   

       

    • Credit Agricole is working on a self-led $15m fixed callable maturing Jul 2028 NC3 that pays 5.62%.  Domestic MTN.   

       

      Credit Agricole is working on a self-led fixed callable maturing Jul 2027 NC1 that pays 5.8%. EMTN.

       

    • Goldman Sachs is working on a self-led $20m floating callable maturing Aug 2033 NC5 that pays O/N SOFR +207bps. EMTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Jul 2033 NC18m that pays 5.75%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 6%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Jul 2026 NC6m that pays 6%. Domestic MTN.

       

    • HSBC is working on a self-led step-up callable maturing Feb 2025 NC1 that pays 4.6% to Feb 2024, 4.65% to Aug 2024 and 4.7% thereafter. Eurodollar.

       

    • IBRD sold a $350m 3y NC1 fixed callable. Lead JPM. The EMTN matures Jul 2026 and is callable Jul 2024 and pays a coupon of 5.35%. Announced Jul 18.

       

    • Jefferies is working on a self-led fixed callable maturing Jul 2026 NC1 that pays 6.5%. Domestic MTN.

       

    • JP Morgan is working on a self-led fixed callable maturing Jul 2026 NC1 that pays 4.3%.  EMTN.

       

      JP Morgan is working on a self-led fixed callable maturing Jul 2028 NC4 that pays 4.65%.  Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Oct 2028 NC5 that pays 5.5%.  Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Jul 2026 NC1 that pays 5.8%.  Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Jul 2030 NC2 that pays 5.4%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 5.5%.  Domestic MTN.  

       

      JP Morgan is working on a self-led fixed callable maturing Jul 2025 NC6m that pays 5.55%.  Domestic MTN.  

       

      JP Morgan is working on a self-led fixed callable maturing Jul 2025 NC1 that pays 5.7%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 5.8%.  Domestic MTN.  

       

    • Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2038 NC5 that pays 5.45%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2033 NC2 that pays 5.65%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2028 NC2 that pays 5.5%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2030 NC2 that pays 5.55%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2038 NC3 that pays 5.45%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2033 NC2 that pays 5.65%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Aug 2024 NC9m that pays 5.65%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2027 NC1 that pays 5.4%. GMTN.

       

    • Standard Chartered is working on a self-led $20m fixed callable maturing May 2024 NC1m that pays 7.47%. EMTN. Credit linked.

       

      Standard Chartered is working on a self-led $20m fixed callable maturing Feb 2024 NC1m that pays 7.33%. EMTN. Credit linked.

       

      Standard Chartered is working on a self-led $20m fixed callable maturing Sep 2023 NC1m that pays 5.66%. EMTN. Credit linked.

       

      Standard Chartered is working on a self-led $20m fixed callable maturing Feb 2024 NC1m that pays 7.25%. EMTN. Credit linked.

       

      Standard Chartered is working on a self-led $5m fixed callable maturing Nov 2023 NC1m that pays 7.43%. EMTN. Credit linked.

       

    • Societe Generale is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 6%. Domestic MTN.

       

    • Toronto Dominion is working on a self-led fixed callable maturing Jan 2025 callable Oct 2023 that pays 5.6%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Aug 2024 callable Apr 2024 that pays 5.75%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Oct 2024 callable Oct 2023 that pays 5.85%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 5.75%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Jul 2028 NC2 that pays 5.5%. Domestic MTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 5.75%. GMTN.

       

      Toronto Dominion is working on a self-led step-up callable maturing Jul 2028 NC1 that pays 5.5% to Jul 2025, 6.1% to Jul 2027 and 7% thereafter. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Aug 2024 NC9m that pays 5.75%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 6.2%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Jul 2025 NC6m that pays 5.75%. GMTN.

       

    • UBS is working on a self-led fixed callable maturing Jun 2026 NC1 that pays 5.54%. EMTN. Credit-linked.

       

      UBS is working on a self-led fixed callable maturing Aug 2025 NC6m that pays 5.4%. EMTN.

       

      UBS is working on a self-led fixed callable maturing Aug 2025 NC1 that pays 4.99%. EMTN.

       

      UBS is working on a self-led fixed callable maturing Aug 2026 NC6m that pays 6%. EMTN.

       

      UBS is working on a self-led fixed callable maturing Jul 2025 NC1 that pays 5.85%. EMTN.

       

      UBS is working on a self-led fixed callable maturing Aug 2025 NC1 that pays 5.85%. EMTN.

       

      UBS is working on a self-led fixed callable maturing Jul 2028 NC2 that pays 5.62%.  EMTN.

       

    • Wells Fargo is working on a self-led step-up callable maturing Jul 2026 NC1 that pays 5.6% to Jul 2024, 5.8% to Jul 2025 and 6.1% thereafter. Domestic MTN.

       

      Wells Fargo is working on a self-led fixed callable maturing Jul 2027 NC1 that pays 5.75%. Domestic MTN. 

       

      Wells Fargo is working on a self-led fixed callable maturing Jul 2033 NC2 that pays 5.7%. Domestic MTN.   

       

    • Ally Financial is working on a fixed callable via InspereX maturing Aug 2028 NC6m that pays 7.35%. Domestic MTN.

     

    Extendibles:

     

    • Bank of Montreal is working on a self-led USD extendible with initial maturity Jan 2024 and then extendible to Jul 2026 that pays 5.95% to Jul 2024, then pays 6% to Jul 2025 and then pays 6.05% thereafter. Domestic MTN. 

     

     
     
     
     

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