Japan Bank for International Cooperation, Quebec bring deals; HSBC firms; JPMorgan softens

By Aleesia Forni and Cristal Cody

New York, April 12 – Japan Bank for International Cooperation and Quebec entered the high-grade bond market on Tuesday as oil prices surged to year-to-date highs.

Japan’s JBIC offered $2.5 billion of bonds in two parts in a deal that was announced earlier this week.

And sovereign issuer Quebec hit the primary with a $2 billion 10-year offering.

With earnings season underway, the day’s new deals continue what has been a slower week for the market.

Only around $15 billion of new issuance is expected this week, coming on the heels of last week’s $39 billion total.

Investment-grade bonds were mixed in secondary trading over the day.

HSBC Holdings plc’s 4.3% senior notes due 2026 improved 3 basis points on Tuesday.

JPMorgan Chase & Co.’s 3.3% senior notes due 2026 traded 6 bps weaker.

Apple Inc.’s 3.25% notes due 2026 softened 3 bps in the secondary market.

AT&T Inc.’s 4.125% notes due 2026 widened 5 bps on the day.

The Markit CDX North American Investment Grade index firmed 1 bp to close at a spread of 80 bps.

JBIC guaranteed notes

Japan Bank for International Cooperation sold $2.5 billion of senior guaranteed bonds (A1/A+) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

Included in the sale was $1 billion of 1.875% five-year notes priced at 99.744 to yield 1.929%, or Treasuries plus 72.9 bps.

And $1.5 billion of 2.375% 10-year bonds priced with a spread of 66.5 bps over Treasuries. Pricing was at 99.506 to yield 2.431%.

The notes will be guaranteed by Japan.

Barclays, Citigroup Global Markets Inc., HSBC Securities, J.P. Morgan Securities LLC and Mizuho Securities are the joint bookrunners.

Proceeds will be used for the bank’s financing operations.

The financial institution is based in Tokyo.

Quebec new issue

Elsewhere, Quebec sold $2 billion of 2.5% 10-year global notes on Tuesday at mid-swaps plus 90 bps, or Treasuries plus 76.7 bps, according to an FWP filing with the SEC.

Pricing was at 99.701 to yield 2.534%.

CIBC Capital Markets, BofA Merrill Lynch, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are the bookrunners.

Proceeds will be added to the consolidated revenue fund of Quebec and used for general expenses or advanced to its financing fund.

HSBC firms

HSBC Holdings’ 4.3% notes due 2026 firmed 3 bps to 214 bps bid during the session, a market source said.

HSBC sold $3 billion of the notes (A1/A/AA-) on March 1 at a spread of 250 bps plus Treasuries.

The banking and financial services group is based in London.

JPMorgan softens

JPMorgan’s 3.3% notes due 2026 eased 6 bps over the day to 150 bps bid, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A-) on March 18 at a spread of 145 bps over Treasuries.

The financial services company is based in New York City.

Apple eases

Apple’s 3.25% bonds due 2026 traded 3 bps softer on Tuesday to head out at 98 bps bid, according to a market source.

The company priced a $1.25 billion add-on to the issue on March 17 at Treasuries plus 100 bps.

Apple originally sold $2 billion of the notes on Feb. 16 at a spread of 150 bps over Treasuries.

The computer and mobile communications device company is based in Cupertino, Calif.

AT&T widens

AT&T’s 4.125% notes due 2026 traded 5 bps weaker on Tuesday at 160 bps bid, a market source said.

The company sold $1.75 billion of the notes (Baa1/BBB+/A-) on Jan. 29 at a spread of 220 bps over Treasuries.

AT&T is a Dallas-based telecommunications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.