Nederlandse Waterschapsbank sells add-on; spreads firm as tone improves; Ensco tightens

By Aleesia Forni

Virginia Beach, Sept. 26 – Nederlandse Waterschapsbank NV came to market with a rare Friday trade during what was otherwise a quiet session in the high-grade bond market.

The bank sold a $500 million add-on to its existing 1.25% notes due 2017 in line with price talk.

The bank’s trade brings the week’s total supply to roughly $27.1 billion, topping expectations of a $20 billion to $25 billion week.

Cash continues to flow into corporate investment-grade bond funds, with $1.68 billion of inflows seen for the week ended Sept. 24.

Looking ahead, another $20 billion to $25 billion is expected to price for the week that will close out a busy September.

Investment-grade bonds spreads traded wider during Friday’s session, following the positive tone seen at mid-morning.

The Markit CDX North American Investment Grade series 22 index was 3 basis points wider at a spread of 64 bps.

The secondary market saw Ensco plc’s new $1.25 billion of senior notes firm early during the session.

Nederlandse Waterschapsbank priced a $500 million add-on to its existing 1.25% notes due Sept. 18, 2017 at 99.907 to yield mid-swaps plus 1 bps, an informed source said.

The notes (Aaa//AA+) sold in line with talk.

Citigroup Global Markets Inc., BofA Merrill Lynch and TD Securities were the bookrunners.

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