Japan Bank, Home Depot, Xilinx, Export Development Canada sell bonds; Home Depot steady

By Cristal Cody

Tupelo, Miss., May 24 – High-grade primary issuance slowed on Wednesday with more than $8 billion of bonds priced over the session.

Japan Bank for International Cooperation placed $5 billion of guaranteed senior bonds in four tranches.

Home Depot Inc. brought a $2 billion three-tranche offering of senior notes.

Xilinx, Inc. priced $750 million of seven-year senior notes.

Also, Export Development Canada sold $500 million of three-year global green notes.

“This is our largest green bond yet, which reflects the increasing demand for sustainable investment products within the international capital markets community,” Ken Kember, Export Development Canada’s chief financial officer, said in a release. “Combatting climate change by supporting clean technologies is a strategic priority for EDC. Canadian companies have the expertise to be world leaders in the sector, which is why we’re working hard to support the commercialization of these companies.”

In the secondary market, Home Depot’s existing bonds were unchanged on the day.

The Markit CDX North American Investment Grade index ended mostly flat at a spread of 62 basis points.

Japan Bank sells $5 billion

Japan Bank for International Cooperation sold $5 billion of guaranteed senior bonds (A1/A+/) in four tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The bank sold $1.5 billion of 2.125% three-year bonds at 99.919 to yield 2.153% and a spread of Treasuries plus 68.5 bps.

The bank priced $500 million of three-year floating-rate notes at par to yield Libor plus 48 bps.

Japan Bank placed $1.5 billion of 2.5% five-year bonds at 99.902 to yield 2.521%, or a Treasuries plus 71.9 bps spread.

The $1.5 billion tranche of 2.875% 10-year bonds priced at 99.75 to yield 2.904%, or a 64.5 bps spread over Treasuries.

Nomura International plc, BofA Merrill Lynch, Goldman Sachs International and Mizuho Securities USA LLC were the bookrunners.

The notes are guaranteed by Japan.

Proceeds from the deal will be used for ordinary operations.

The financial institution is based in Tokyo.

Home Depot prices $2 billion

Home Depot priced $2 billion of senior notes (A2/A/) in three tranches on Wednesday, according to an FWP filing with the SEC.

The company sold $500 million of three-year floating-rate notes at par to yield Libor plus 15 bps.

Home Depot priced $750 million of 1.8% three-year fixed-rate notes at 99.942 to yield 1.82% and a spread of Treasuries plus 35 bps.

The company also sold $750 million of 3.9% 30-year notes at 99.316 to yield 3.939%, or a Treasuries plus 100 bps spread.

Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.

Proceeds will be used for general corporate purposes, including repurchases of shares of the company’s common stock.

Home Depot is an Atlanta-based home improvement retailer.

Xilinx seven-year notes

Xilinx priced $750 million of 2.95% seven-year senior notes at 99.887 to yield 2.968%, according to a market source and an FWP filing with the SEC on Wednesday.

The notes (A3//) priced with a spread of Treasuries plus 90 bps, on the tight side of guidance.

J.P. Morgan Securities, U.S. Bancorp Investments, Inc., Barclays and SMBC Nikko Securities America, Inc. were the bookrunners.

Proceeds will be used for general corporate purposes, which may include the refinancing of debt, including cash payments in connection with the conversion or maturity of the company’s 2.625% convertible senior notes due June 15, 2017.

Xilinx is a San Jose, Calif.-based technology company.

EDC brings bonds

Export Development Canada (Aaa/AAA) priced a $500 million dollar-denominated offering of 1.625% three-year global green notes on Wednesday at 99.883 to yield 1.665%, according to a news release and an FWP filing with the SEC.

The notes priced at a spread of 17.25 bps over Treasuries.

HSBC Bank plc, J.P. Morgan Securities and SEB Securities, Inc. were the bookrunners.

Export Development Canada held global investor calls on Monday for the deal.

Proceeds will be used to support existing and future lending operations for eligible transactions that include air, water or soil and climate change preservation, protection or remediation.

The deal is Export Development Canada’s third green bond and largest yet, according to the news release. The agency previously issued $300 million of bonds in January 2014 and $300 million in December 2015.

Ottawa-based Export Development Canada is a Canadian government-owned export credit agency.

Home Depot mixed

Home Depot’s existing 2.125% notes due Sept. 15, 2026 were unchanged in the secondary market on Wednesday at 62 bps bid, a market source said.

The company sold $1 billion of the notes on Sept. 6 at a spread of 70 bps over Treasuries.

Home Depot’s 3.5% notes due Sept. 15, 2056 were unchanged at 98 bps bid.

The company sold $1 billion of the notes on Sept. 6 at a Treasuries plus 135 bps spread.

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