Scotiabank, Suntory, Nordic Investment Bank price notes; Italy prints tight on strong demand

By Cristal Cody

Tupelo, Miss., Oct. 9 – High-grade deal volume on Wednesday included new issues in both the corporate and sovereign, supranational and agency primary markets.

Bank of Nova Scotia sold $1 billion of three-year senior bail-inable notes.

Japanese brewer Suntory Holdings Ltd. brought $500 million of five-year senior notes to the market.

Meanwhile, Italy priced $7 billion of global notes in three tranches with the issues printing 10 basis points to 15 bps tighter than guidance.

The deal saw heavy demand with $19 billon of orders.

Nordic Investment Bank also sold $1 billion of three-year global notes during the session.

Week to date, more than $25 billion of corporate and sovereign, supranational and agency bonds have priced.

The Markit CDX North American Investment Grade 33 index tightened over the session and closed more than 1 bp better at a spread of 62 bps.

Scotiabank prices $1 billion

Bank of Nova Scotia sold $1 billion of 2% three-year senior bail-inable notes at a spread of 60 bps over Treasuries on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The bail-inable notes (A2/A-/AA-) priced at 99.969 to yield 2.01%.

Initial price talk was in the 75 bps spread area.

Scotia Capital (USA) Inc., Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.

The Toronto-based bank plans to use the proceeds for general business purposes.

Suntory taps primary

Suntory Holdings (Baa2/BBB/) priced $500 million of 2.25% five-year senior notes at a spread of Treasuries plus 88 bps on Wednesday, a market source said.

The notes priced on the tight side of guidance in the Treasuries plus 90 bps area.

BofA Securities, Citigroup Global Markets Inc., J.P. Morgan Securities and Morgan Stanley & Co. LLC were the bookrunners of the Rule 144A and Regulation S offering.

Suntory is a Tokyo-based alcoholic beverage brewing and distillery company.

Italy prices $7 billion notes

Italy (Baa3/BBB/BBB) priced a $7 billion three-tranche offering of global notes on Wednesday better than talk, according to a market source.

A $2.5 billion tranche of 2.375% five-year notes priced at a spread of mid-swaps plus 105 bps, or Treasuries plus 103.5 bps.

The notes priced tighter than guidance in the mid-swaps plus 120 bps area.

Italy sold $2 billion of 2.875% 10-year notes at mid-swaps plus 150 bps, or a Treasuries plus 140.75 bps spread.

Price guidance on the notes due Oct. 17, 2029 was in the mid-swaps plus 160 bps area.

In the final tranche, $2.5 billion of 4% 30-year notes priced at a spread of mid-swaps plus 235 bps, compared to guidance in the mid-swaps plus 245 bps area. The notes priced with a Treasuries plus 194.75 bps spread.

Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities were the bookrunners.

The offering is Italy’s first dollar bond deal since 2010.

Nordic Investment Bank prints

Nordic Investment Bank (Aaa/AAA/) priced $1 billion of 1.375% three-year global notes on Wednesday at 99.728 and a spread of mid-swaps plus 8 bps, or Treasuries plus 7.4 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes due Oct. 17, 2022 were initially talked to price in the mid-swaps plus 8 bps area.

HSBC Bank plc, J.P. Morgan Securities plc, RBC Capital Markets LLC and Toronto-Dominion Bank were the bookrunners.

Nordic Investment Bank is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.