Development Bank of Japan, OeKB price; corporates quiet; Swedish Export plans deal

By Cristal Cody

Tupelo, Miss., Aug. 29 – High-grade corporate issuers stayed out of the primary market on Wednesday, while two SSA issuers priced bonds.

Development Bank of Japan Inc. sold $1.75 billion of senior notes in two tranches.

Oesterreichische Kontrollbank AG priced $1.5 billion of three-year notes.

The deals bring week to date investment-grade bond volume to $4.25 billion.

Corporate supply has been thin over the previous two sessions with $1 billion of bonds priced.

Brixmor Operating Partnership LP sold $250 million of long three-year senior floating-rate notes on Tuesday, while Caterpillar Financial Services Corp. priced a $750 million reopening of medium-term floating-rate notes due March 15, 2021 on Monday.

Light supply was expected over the week with many desks thinly staffed ahead of the Labor Day holiday. Market sources forecasted up to about $5 billion of issuance for the week.

Coming up on Thursday, Swedish Export Credit Corp. intends to price a benchmark offering of U.S. dollar-denominated two-year notes.

The Markit CDX North American Investment Grade 30 index closed the day modestly softer at a spread of 59 basis points.

Development Bank prints

Development Bank of Japan sold $1.75 billion of senior notes (A1/A+/) in two parts on Wednesday, according to a market source.

The bank priced $1 billion of 3.125% five-year notes at a mid-swaps plus 31 bps spread, compared to initial talk in the mid-swaps plus 35 bps area and later guidance in the mid-swaps plus 33 bps area.

The $750 million tranche of 3.25% 10-year notes priced at a spread of mid-swaps plus 41 bps. The notes were initially talked to price in the mid-swaps plus 43 bps area. Guidance was tightened to the mid-swaps plus 42 bps area.

BofA Merrill Lynch, Daiwa Capital Markets Europe Ltd., Goldman Sachs International and Nomura International plc were the bookrunners.

Development Bank of Japan is a Tokyo-based financial services and investment company owned by the government of Japan.

OeKB sells fixed-rate notes

Oesterreichische Kontrollbank (Aa1/AA+/) priced $1.5 billion of 2.875% three-year guaranteed global notes on Wednesday at 99.835, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced at a spread of mid-swaps plus 3 bps, or a spread of 20 bps over Treasuries.

The issue was initially talked to print in the mid-swaps plus 6 bps area with guidance later tightened to the mid-swaps plus 4 bps area.

Deutsche Bank AG, London Branch, J.P. Morgan Securities plc and RBC Capital Markets, LLC were the underwriters.

Vienna-based Oesterreichische Kontrollbank provides financial and information services to Austria’s export industry and the capital market.

SEK eyes dollar market

Looking ahead to Thursday, Swedish Export Credit (Aa1/AA+/) plans to price a benchmark offering of two-year global notes, according to a market source.

The issue was initially talked to price in the mid-swaps plus 3 bps area.

Citigroup Global Markets Ltd., Nomura International, RBC Capital Markets and TD Securities (USA) LLC are the bookrunners.

Swedish Export Credit is a Stockholm-based state-owned financial services company for the Swedish export industry.

© 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.