Mondelez prices $1 billion; high-grade supply light; Johnson Controls eyes primary market

By Cristal Cody

Tupelo, Miss., Sept. 2 – High-grade supply on Wednesday included a new offering from Mondelez International, Inc.

The company sold $1 billion of notes (Baa1/BBB/) in two tranches.

Meanwhile, Freddie Mac priced $3.5 billion of three-year Reference Notes due Sept. 8, 2023.

Suzano Austria GMBH announced a registered offering of dollar-denominated global notes due in 2031 (/BBB-/BBB-) on Wednesday.

European Stability Mechanism (Aa1/AAA/AAA) also marketed a benchmark Rule 144A and Regulation S dollar-denominated offering of notes due 2025.

In other activity, Johnson Controls International plc continued a second round of fixed income investor calls on Wednesday for dollar-denominated 10-year green senior notes (Baa2/BBB+/BBB) and a possible euro-denominated issue, a source said.

Corporate deal volume totals about $4 billion week to date.

Supply has been led by Mizuho Financial Group, Inc.’s $2 billion of senior notes (A1/A-/) that priced in three tranches on Tuesday in the company’s second diversity and inclusion bond offering this year.

Light issuance was expected by market participants in front of the Labor Day holiday with about $5 billion up to $15 billion of supply forecast.

The Markit CDX North American Investment Grade 33 index firmed nearly 1 basis point to head out at a spread of 62.02 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF improved 0.4% to 136.7.

The PIMCO Investment Grade Corporate Bond index closed up 0.38% at 116.0.

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