World Bank prices two tranches; light high-grade volume forecast; Union Pacific notes soften

By Cristal Cody

Tupelo, Miss., April 7 – Primary action in the high-grade bond market stayed mostly quiet on Friday, and light supply is expected in the shortened holiday week ahead.

The International Bank for Reconstruction and Development, also known as the World Bank, priced $350 million of five-year fixed- and floating-rate notes.

World Bank raised the funds from two offerings to Swedish insurer Folksam that were customized to meet Folksam’s investment needs, according to the release on Friday.

The Folksam Group said it plans to expand its investments in bonds that support environmental and social goals.

With the latest sales, World Bank said its green bond issuance has hit a total of $10.05 billion for climate investments in developing countries. The bank has issued more than 130 green bonds in 18 currencies since 2008.

Looking ahead to the upcoming week, light market action is expected.

Syndicate sources expect about $10 billion of high-grade deal volume in the week ahead with most of the issuance likely in the first two sessions.

Following the holiday week, Australian financial services company Suncorp-Metway Ltd. plans to hold a roadshow for a dollar-denominated Rule 144A and Regulation S bond offering.

In other activity on Friday, Union Pacific Corp.’s senior notes (A3/A/) softened in secondary trading.

The Markit CDX North American Investment Grade index ended the day mostly unchanged at a spread of 65 basis points.

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