World Bank, Toyota Credit, AerCap price; AT&T firms; State Street, CVS Health mostly flat

By Cristal Cody

Eureka Springs, Ark., May 17 – The launch of Dell Inc.’s upsized $20 billion bond offering dominated the primary market on Tuesday, but a few issuers brought deals during the session.

The International Bank for Reconstruction and Development (World Bank) announced that it priced a $5 billion 1.375% five-year global bond at 99.74 to yield 1.429%.

“What a great trade,” Adrien de Naurois, managing director of SSA syndicate at BofA Merrill Lynch, said in a release. “The first five-year sovereign/supranational/agency in over two months. But more significantly, the tightest print to U.S. Treasuries in any tenor for an SSA this year whilst printing the $5 billion.”

Also on Tuesday, Toyota Motor Credit Corp. sold $1.25 billion in two tranches of three-year series B medium-term notes (Aa3/AA-/).

In addition, AerCap Ireland Capital Ltd. and AerCap Global Aviation Trust priced $1 billion of five-year notes during the session.

Credit spreads remained soft over the day. The Markit CDX North American Investment Grade index closed more than 1 basis point weaker at a spread of 83 bps.

In the secondary market, AT&T Inc.’s 4.125% notes due 2026 firmed 1 bp on Tuesday.

State Street Corp.’s notes (A1/A/AA-) priced in two parts on Monday traded about 1 bp tighter than issuance earlier in the day.

CVS Health Corp.’s $3.5 billion of notes (Baa1/BBB+) brought to market in two tranches on Monday were seen early Tuesday wrapped around issuance.

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