New Issue: Quebec prices $2.5 billion of 1.5% five-year notes to yield mid-swaps plus 19 bps

By Cristal Cody

Tupelo, Miss., Feb. 4 – The Province of Quebec (Aa2/AA-/AA-) priced $2.5 billion of 1.5% five-year notes on Tuesday at mid-swaps plus 19 basis points, or a spread of Treasuries plus 19.4 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were initially talked to print in the mid-swaps plus 21 bps area with guidance firmed to the mid-swaps plus 20 bps area.

The issue priced at 99.459 to yield 1.613%.

BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. were the bookrunners.

Proceeds will be added to the province’s consolidated revenue fund or advanced to the financing fund.

Issuer:	Province of Quebec
Amount:	$2.5 billion
Description:	Series QX global notes
Maturity:	Feb. 11, 2025
Bookrunners:	BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc.
Co-lead managers:	CIBC World Markets Corp., National Bank of Canada Financial Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC
Co-managers:	BNP Paribas Securities Corp., Desjardins Securities Inc., Deutsche Bank AG, HSBC Bank plc, MUFG and NatWest Markets plc
Coupon:	1.5%
Price:	99.459
Yield:	1.613%
Spread:	Mid-swaps plus 19 bps, or Treasuries plus 19.4 bps
Call feature:	None
Trade date:	Feb. 4
Settlement date:	Feb. 11
Ratings:	Moody’s: Aa2
	S&P: AA-
	Fitch: AA-
Distribution:	SEC registered
Price guidance:	Mid-swaps plus 20 bps area; initial talk at mid-swaps plus 21 bps area

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