USD New Issues: Deluge ensues; $120bn forecast for Sep

Floodgate 9 Nov 2020
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No less than twenty issuers are lining up today as the floodgates open for the post-Labor Day deluge of issuance. Around $50bn is expected this week.

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  • Deluge ensues; $120bn forecast for September

  • New issues

     

    Deluge ensues; $120bn forecast for September  

    A deluge of IG new issuance has engulfed the primary markets as the floodgates open for the seasonal post-Labor Day rush. No less than twenty issuers are on the docket today. For the week sources expect around $50bn, with some expecting upwards of around $60bn.

     

    Spreads levels are amenable as week over week IG corporate spreads narrowed 1bp to 122bps while high yield spreads tightened 9bps to 381bps, according to the ICE BofA Masters indexes.

     

    For the month of September around $120bn is forecast – lower than last year’s $145bn forecast, but well above the actual 2022 total of $78.6bn, sources say. 

     

     

    New issues

     

    • UBS AG is preparing USD 2y, 2y FRN and 5y bonds at around Treasuries +105bps, SOFR equivalent and +150bps. Self-led. Aa3/A+/A+.

       

    • VW America is preparing a $TBA 5-part (2y, 2y FRN, 3y, 5y and 10y). Seen at around Treasuries +105, SOFR equivalent, 125, 150 and 185bps. Leads are BBVA, GS, HSBC, MS and MUFG.  A3/BBB+.

       

    • Southern Co. plans USD long 5y and 10y bonds in the region of Treasuries +135 and 175bps. Leads are Barclays, MUFG, RBC, Scotia and WFS. Baa2/BBB/BBB+.

       

    • Duke Energy is preparing USD 10y and 30y bonds at around Treasuries +175 and 200bps. Baa2/BBB.

       

    • Brazilian meat giant JBS is working on USD 10y and 30y bonds in the area of Treasuries +275 and 310bps. Via Barclays, BCOBRA, BofA, BBVA, BMO, Bradesco, BTG, Citi, Mizuho, RBC (BD) and Santander. Baa3/BBB-/BBB-.

       

    • Codelco plans a $TBA 2-part (long 10y and 30y). Leads BNPP, Citi, JPM, Santander and Scotia. A3/A. +210bps and +235bps area.

       

    • IADB is working on a $TBA 10y. Leads Citi, RBCCM, TD and WFC. Aaa/AAA. Price talk SOFR MS+49bps. Expected to price tomorrow.

       

    • Phillip Morris is working on a $TBA 3-part (5y, 7y and 10y). Leads BofA, Barclays and DB. A2/A-/A. Price talk +125bps, +155bps and +180bps areas.

       

    • CSX plans a $TBA 10y. Leads Barclays, BofA, Citi and MS. A3/BBB+. Price talk +115bps area.  

       

    • Swedbank is preparing USD 3y fixed and floating rate notes at around Treasuries +180bps and SOFR equivalent. Leads are Barclays, BofA, Citi and RBC. Baa1/A-/AA-.

       

    • John Deere Capital plans USD 2y, 3y and 10y bonds in the region of Treasuries +55, 70 and 115bps, respectively. Leads are Barclays, CA, JPM, MUFG and SIEWIL. A2/A/A+.

       

    • WEC Energy is working on a $TBA 3y. Leads BofA, BMO, PNC, Scotia. Baa1/BBB+/BBB+. Price talk +115bps area.  

       

    • Nordic Investment Bank plans a $1bn (no grow) long 2y. Leads CACIB, DB and JPM. Aaa/AAA. Price talk MS +22bps area. Expected to price tomorrow.

       

    • MidAmerican Energy is preparing USD 10y and 31y bonds at around Treasuries +145 and 175bps. Leads are Barclays, Citi, MUFG, Scotia and USB. Aa2/A+.

       

    • BHP Billiton plans USD 3y, 5y, 7y, 10y, 30y  bonds at around Treasuries +80, 100, 115, 130 and 150bps. Leads are Citi, DB, GS, JPM and Scotia.

       

    • AIIB plans a USD 3y Sustainable Development Bond via BofA, BMO, Citi and Nomura. Via BMO, BofA, ING, Mizuho, MS, NatWest and WFC. Aaa/AAA/AAA. Price talk MS +43bps area.

       

    • ING plans a three-tranche USD offering consisting of a 4y NC3 fixed-to-floating bond at around USTs +170bps, a 4y NC3 FRN at SOFR equivalent and a 11 NC10y fixed-to-floating at around +215bps. Leads are BMO, BofA, ING, Mizuho, MS (B&D), NatWest and WFS. Baa1/A-/A+.

       

    • SMFG plans a $TBA 2-part (5y and 10y). Leads SMBC, GS, Jefferies and BofA. A1/A. Price talk +165bps and +185bps area. 

       

    • CBA plans a three tranche USD offering consisting of a 2y bond at around USTs +80bps, a 2y SOFR equivalent FRN, both via Barclays, Citi, CBA, MS and RBC, plus a 5y Covered bond at SOFR +95bps via Barclays, BMO, CBA, Citi, RBC and TorDom.

       

    • Sumitomo Mitsui Trust is preparing a three tranche USD offering involving 3y fixed and floating at around Treasuries +125bps/SOFR equivalent and a 5y fixed in the region of  +150bps. Via Citi, Goldman (B&D), Daiwa and JPM.

       

    • DBS plans a 2y fixed at +53bps and a 2y FRN at SOFR equivalent via Bank of China, Barclays, BofA (B&D), BNPP, DBS and Wells Fargo. Aa2/AA-.

       

    • Unilever Capital is preparing USD 5y and 10y bonds at around Treasuries +75 and 105bps, respectively. Leads are BofA, GS, HSBC and Mizuho. A1/A+.

       

    • MetLife is working on a USD 5y FA-backed bond at around Treasuries +125bps. Leads are BofA (B&D), GS, MS and PNC. Aa3/AA/AA-.

       

    • Nippon Life plans a 30y NC10 step-up sub (A3/A-) via BofA, Citi, Goldman, JPM and MS following investor meetings from Sep 5.

       

    • Another Brazilian meat producer Minerva is preparing a USD intermediate bond through BofA, BB, Bradesco, HSBC, Itau BBA, JPM, Mizuho, MS, MUFG, Rabo and XP.

       

    • Turkey’s Vakifbank plans a USD 5y Sustainability bond at around 9.5%. B&D Standard Chartered. B-.

       

    • Mitsubishi HC Finance America is working on a $500m (no grow) 5y. Price talk +165bps.  

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