KfW, Quebec, Airbus price; International Finance eyes $250 million tap; telecom bonds ease

By Cristal Cody

Tupelo, Miss., April 5 – The high-grade bond market saw new SSA and corporate issuance over Wednesday’s session.

KfW priced $4 billion of long five-year global notes.

Inter-American Development Bank sold $3.75 billion of three-year global notes.

The Province of Quebec priced $1.25 billion of 10-year dollar-denominated global notes in line with talk.

In corporate supply, UniCredit SpA priced a $2 billion two-part offering of senior notes.

Airbus Group SE priced $1.5 billion of senior notes in two tranches.

Protective Life Global Funding brought $300 million of three-year senior notes to the primary market.

Coming up in new issuance, International Finance Corp. is preparing to price a $250 million add-on to a floating-rate note.

Also, Fannie Mae plans to price an offering of five-year benchmark notes.

In the secondary market on Wednesday, bonds in the telecommunications sector weakened.

AT&T Inc.’s 4.25% notes due March 1, 2027 eased about 5 basis points.

Verizon Communications Inc.’s 4.125% notes due March 16, 2027 traded about 3 bps softer.

The Markit CDX North American Investment Grade index was mostly unchanged on the day at a spread of 66 bps.

KfW prices $4 billion

KfW priced $4 billion of 2.125% global notes due June 15, 2022 (Aaa/AAA/) on Wednesday at 99.885 and a spread of Treasuries plus 27.05 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The benchmark dollar notes were talked to price at the mid-swaps plus 15 bps area.

Barclays, HSBC Bank plc and J.P. Morgan Securities plc were the lead managers.

The notes are guaranteed by the Federal Republic of Germany.

KfW is a government-backed bank based in Frankfurt.

Inter-American sells notes

Inter-American Development Bank sold $3.75 billion of 1.625% three-year global notes at Treasuries plus 23.75 bps on Wednesday, according to a market source.

The notes (Aaa/AAA/) are due May 12, 2020.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Nomura Securities International, Inc. and RBC Capital Markets, LLC were the bookrunners.

The provider of development financing for Latin America and the Caribbean is based in Washington, D.C.

UniCredit brings $2 billion

UniCredit priced $2 billion of senior notes (Baa1/BBB-/BBB+) in two tranches in a Rule 144A/Regulation S offering on Wednesday, according to a market source.

The company placed $1.25 billion of 3.75% five-year notes at a spread of Treasuries plus 200 bps.

The $750 million offering of 4.625% 10-year notes priced at a Treasuries plus 240 bps spread.

The notes priced on the tight side of guidance.

Citigroup Global Markets, Goldman Sachs & Co., Morgan Stanley & Co. LLC, Nomura Securities, UBS Securities LLC and UniCredit Capital Markets LLC were the lead managers.

UniCredit is a banking and financial services company based in Milan.

Airbus prices dollar notes

Airbus Group (A2/A+/A-) priced a $1.5 billion dollar-denominated two-tranche Rule 144A/Regulation S offering of senior notes on Wednesday, according to a market source.

The company sold $750 million of 3.15% 10-year notes at a spread of Treasuries plus 80 bps.

Airbus priced the $750 million tranche of 3.95% 30-year notes at a 100 bps spread over Treasuries.

Both tranches priced on the tight side of talk.

Citigroup Global markets, Goldman Sachs, J.P. Morgan Securities and Morgan Stanley were the bookrunners.

Airbus is an aerospace and defense corporation based in Leiden, Netherlands.

Quebec prices $1.25 billion

Quebec priced $1.25 billion of 2.75% 10-year dollar-denominated global notes (Aa2/A+/AA-) at 98.972 to yield 2.869% on Wednesday, according to a market source and an FWP filing with the SEC.

The series Q notes due April 12, 2027 priced at a spread of Treasuries plus 50.75 bps, or mid-swaps plus 53 bps.

The notes were talked to price in the mid-swaps plus low to mid 50 bps area.

J.P. Morgan Securities, BofA Merrill Lynch, RBC Capital Markets and TD Securities (USA) LLC were the bookrunners.

The notes are non-callable except in certain Canadian taxation events.

Proceeds will be added to Quebec’s consolidated revenue fund and applied to general expenses or advanced to the financing fund of the province.

Protective Life Global prints

Protective Life Global Funding sold $300 million of 2.262% three-year senior notes at a spread of Treasuries plus 83 bps on Wednesday, a market source said.

The notes due April 8, 2020 (A2/AA-/) were talked to price in the Treasuries plus 85 bps area, plus or minus 2 bps.

Mizuho Securities USA Inc., Morgan Stanley and Wells Fargo Securities LLC were the bookrunners.

Protective Life Global Funding is a Charlotte, N.C.-based debt financing vehicle for Protective Life Insurance Co.

Fannie Mae markets notes

Fannie Mae plans to price an offering of five-year benchmark notes, according to a news release on Wednesday.

The notes are due April 5, 2022.

J.P. Morgan Securities, Nomura Securities and TD Securities are the bookrunners. The co-managers include CastleOak Securities LP, Great Pacific Securities, Guzman & Co., Loop Capital Markets LLC and Stern Brothers & Co.

The issue is expected to settle on April 10.

Fannie Mae is a mortgage credit provider based in Washington, D.C.

International Finance preps

International Finance (Aaa/AAA) plans to price a $250 million add-on to its floating-rate notes due Dec. 15, 2021 on Thursday, according to a market source.

The notes were initially talked to price in the Libor plus 6 bps area.

BofA Merrill Lynch, BMO Capital Markets Corp. and Deutsche Bank Securities are the lead managers.

The total outstanding following the deal will be $1 billion.

Washington, D.C.-based International Finance is a member of the World Bank Group.

AT&T weakens

AT&T’s 4.25% notes due March 1, 2027 softened about 5 bps on Wednesday to 172 bps bid, according to a market source.

The company priced $2 billion of the notes (Baa1/BBB+/A-) on Jan. 31 at a spread of Treasuries plus 180 bps.

AT&T is a Dallas-based telecommunications company.

Verizon eases

Verizon Communications’ 4.125% notes due March 16, 2027 eased 3 bps during the session to head out at 156 bps bid, a market source said.

Verizon sold $3.25 billion of the notes (Baa1/BBB+/A-) on March 13 at a spread of Treasuries plus 160 bps.

The telecommunications company is based in New York City.

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