ING Groep prices $1.25 billion; volume light; Takeda considers dollar-denominated deal

By Cristal Cody

Tupelo, Miss., Nov. 8 – ING Groep NV tapped the high-grade primary market on Thursday with a $1.25 billion offering of green senior notes in an otherwise mostly quiet session.

Florida Power & Light Co. also priced $99.33 million of 50-year floating-rate notes.

Focus on Thursday turned toward the conclusion of the Federal Reserve’s monetary policy meeting. The Federal Open Market Committee said in a press release that it would leave rates unchanged since the labor market has continued to strengthen and economic activity has risen since its September meeting.

Looking ahead, Takeda Pharmaceutical Co., Ltd. may tap the dollar-denominated primary market following a European roadshow next week. The company plans to acquire Dublin-based drug maker Shire plc for $62 billion.

Deal volume soared on Wednesday after no major changes erupted from the U.S. mid-term elections.

Volkswagen Group of America Finance LLC (A3/BBB+/) priced $8 billion of notes in seven tranches in a Rule 144A and Regulation S offering on Wednesday.

About $19 billion of high-grade bonds priced in the previous session, led by Volkswagen’s deal.

Just over $2 billion of investment-grade bonds were brought to the primary market on Tuesday, while $1.5 billion of bonds priced on Monday.

About $15 billion to as much as $30 billion of issuance of supply is forecast by market sources for the week.

ING prices $1.25 billion

ING Groep (Baa1/A-/A+) priced $1.25 billion of 4.625% green senior notes due Jan. 6, 2026 on Thursday at a spread of 150 bps over Treasuries, according to a market source.

The notes were talked to price in the Treasuries plus 155 bps area, plus or minus 5 bps. Initial talk was in the Treasuries plus 170 bps area.

BofA Merrill Lynch, Credit Agricole CIB, Credit Suisse Securities (USA) LLC, ING Financial Markets LLC, SEB Securities, Inc. and Standard Chartered Bank were the bookrunners.

ING Groep also planned to price euro-denominated 12-year notes.

The global financial institution is based in Amsterdam.

Takeda mulls deal

Takeda Pharmaceutical (A2/A-/) plans to hold a roadshow for a Rule 144A and Regulation S offering of euro-denominated senior notes and a potential dollar-denominated issue, according to a market source.

The company will hold fixed-income investor meetings and calls in Europe Nov. 12 to Nov. 14.

J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp. and HSBC Bank plc are the active bookrunners.

The euro offering is expected to include two-year floating-rate notes, two-year fixed-rate notes, eight-year fixed-rate notes and 12-year fixed-rate notes.

A possible dollar-denominated transaction may follow.

The pharmaceutical company is based in Osaka, Japan.

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