Sumitomo Mitsui, Commonwealth Bank of Australia, Bank Nederlandse price; credit spreads ease

By Cristal Cody

Tupelo, Miss., July 6 – High-grade issuers priced more than $7 billion of bonds on Thursday in the first primary action of the holiday week.

Sumitomo Mitsui Financial Group Inc. brought $4.25 billion of senior notes in three tranches, adding a second fixed-rate tranche to its deal.

Commonwealth Bank of Australia sold $1.5 billion of 30-year notes.

Bank Nederlandse Gemeenten NV priced $1.5 billion of three-year floating-rate notes in line with price guidance.

U.S. high-grade issuers stayed out of the primary market on Monday with the early market close and on Wednesday following the Independence Day holiday.

The Markit CDX North American Investment Grade index eased about 1 basis point on Thursday to a spread of 62 bps.

In the secondary market, Walgreens Boots Alliance Inc.’s 3.45% notes due June 1, 2026 softened about 3 bps. Walgreens announced in the previous week it plans to purchase more than 2,100 Rite Aid Corp. stores instead of completing an acquisition of the entire company.

Kroger Co.’s senior notes (Baa1/BBB/BBB) traded about 1 bp to 4 bps tighter on the day.

Whole Foods Market Inc.’s 5.2% notes due Dec. 3, 2025 have been stable since tightening about 85 bps on June 16 after Amazon.com, Inc. announced it will purchase the natural and organic foods grocer for $13.7 billion in cash.

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