FIG leads way in quiet high-grade session

martes 8 de julio de 2014 17:45 GYT

By Shankar Ramakrishnan and Michael Gambale

NEW YORK, July 8 (IFR) - FIG supply led the way in another relatively quiet session in the US high-grade market on Tuesday, with four issuers raising a total US$5.1bn.

The week's tally now stands at US$8bn, and at least one more decent-sized FIG trade is expected in the next couple days.

Sumitomo Mitsui Banking raised the most today, hitting the market with a US$3bn four-part trade that was greeted with a surge of investor orders. The trade, comprising three-year fixed and floaters, five-year fixed and 10-year fixed rate notes, came with IPTs that seemed to carry about 10bp-12bp in concessions.

But as orders built up to a final US$12.5bn book, the bookrunners tightened levels by 10bp-15bp to final pricing of Treasuries plus 45bp (3-yr fixed), Libor plus 32bp (3-yr floater), T+60bp (5-yr fixed) and T+85bp (10-yr fixed).

At these levels, the four tranches were judged to be paying about flat to 2bp in concessions compared with outstandings.

American Honda Finance Corp took out US$1bn, pricing a three-year fixed and floater whose levels were tightened by 10bp from IPTs as books totalled US$2.5bn. The US$650m three-year fixed had the most demand at US$1.75bn and was judged to carry negative 4bp in concession versus outstanding 2017s.

Other issuers today included ANZ with a US$500m two-year and Peru's Corporacion Financiera de Desarrollo SA (Cofide), which raised US$600m in five-year senior and a 15-non-call 10 subordinated Tier 2 notes that attracted an order book of US$7.75bn.

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