MUFG prices $4.6 billion; Bank of America sells preferreds; World Bank in deal pipeline

By Cristal Cody

Tupelo, Miss., July 17 – High-grade bank and financial issuance continued on Tuesday with new deals from Mitsubishi UFJ Financial Group, Inc. and Bank of America Corp.

Mitsubishi UFJ Financial Group tapped the primary market with a $4.6 billion six-part offering of senior notes.

Bank of America priced $854 million of 5.875% $25-par perpetual preferred shares on Tuesday in an offering that was upsized from $250 million, a source said.

Coming up on Wednesday, the International Bank for Reconstruction and Development, or World Bank, plans to price notes in its first benchmark-sized dollar-denominated offering of the year, a source said.

Financial supply is expected to dominate primary action over the week following the release of earnings reports.

On Monday, JPMorgan Chase & Co., Wells Fargo Bank NA, Citigroup Inc., Citibank, NA and Banque Federative du Credit Mutuel priced more than $15 billion of notes.

About $25 billion of supply is expected this week, according to syndicate sources.

In other activity on Tuesday, Freddie Mac announced that it will forgo an offering of reference notes in July.

The Markit CDX North American Investment Grade 30 index ended about 0.5 basis point tighter on Tuesday at a spread of 60.4 bps.

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