World Bank, TD Bank price; CBS sells notes; MUFG firms; Anheuser-Busch mostly flat; CDX firms

By Cristal Cody

Eureka Springs, Ark., July 6 – World Bank, Toronto-Dominion Bank and CBS Corp. tapped the high-grade market on Wednesday as bonds improved over the day.

World Bank (Aaa/AAA) came with a $5 billion three-year global benchmark bond offering that priced with a spread of 22.7 basis points over Treasuries, “making it the tightest USD three-year benchmark from a sovereign, supranational or agency (SSA) issuer of 2016,” the bank said in a release.

The bank noted it’s the first benchmark bond issued by a supranational following the recent market volatility.

“The first major USD benchmark since the Brexit volatility did not disappoint,” Jamie Stirling, head of SSA DCM at joint bookrunner BNP Paribas Securities Corp., said in the release. “The World Bank has printed the tightest SSA USD three-year of 2016 yet, offering only a slight concession to their secondary curve, testament to the World Bank’s ability to re-open markets by providing a new liquid reference point for investors and issuers.”

Also on Wednesday, Toronto-Dominion Bank sold $3 billion of three- and five-year fixed- and floating-rate senior medium-term notes in four parts.

CBS priced $700 million of senior notes due Jan. 15, 2027 with a spread of 170 bps over Treasuries.

The Markit CDX North American Investment Grade index ended the day 2 bps tighter at a spread of 77 bps.

Bank and financial paper was mixed in the secondary market. Mitsubishi UFJ Financial Group, Inc.’s 3.85% notes due 2026 traded 5 bps better on the day.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 headed out unchanged to 1 bp tighter.

Oracle Corp.’s senior notes (A1/AA-) were about 6 bps to 8 bps weaker early in the session.

World Bank sells $5 billion

World Bank (International Bank for Reconstruction and Development) announced it priced a $5 billion 0.875% three-year global benchmark bond with a spread of 22.7 bps over Treasuries on Wednesday.

The bonds due Aug. 15, 2019 priced at 99.979 to yield 0.882%.

Lead managers were BNP Paribas Securities, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and TD Securities (USA) LLC.

The order book closed in excess of $6.1 billion with over 100 accounts participating.

The majority of the bonds, 47%, went to investors in the Americas, while 36% went to Asian investors and 17% to European investors.

Central banks and official institutions took down 55% of the bonds. Asset managers/insurance and pension funds bought 25%, and banks, bank treasuries and corporate investors took 20% of the deal.

The deal is World Bank’s first benchmark transaction in 2016.

The global development financing cooperative is based in Washington, D.C.

TD raises $3 billion

Toronto-Dominion Bank sold $3 billion of series A three- and five-year fixed- and floating-rate senior medium-term notes on Wednesday, according to a market source.

The bank priced $250 million of three-year floating-rate notes at Libor plus 65 bps.

The $1 billion tranche of 1.45% three-year fixed-rate notes priced with a spread of 78 bps over Treasuries.

Toronto-Dominion Bank sold $250 million of five-year floating-rate notes at Libor plus 90 bps.

The bank priced $1.5 billion of 1.8% five-year fixed-rate notes at 90 bps over Treasuries.

Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, TD Securities (USA) and UBS Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, according to a June 30 filing with the Securities and Exchange Commission.

The bank and financial services company is based in Toronto.

CBS prices $700 million

CBS sold $700 million of 2.9% senior notes due Jan. 15, 2027 (Baa2/BBB) with a spread of 170 bps over Treasuries on Wednesday, according to a market source and a company release.

Citigroup, JPMorgan, Mizuho Securities USA Inc. and RBC Capital Markets Corp. were the bookrunners.

The notes are guaranteed by CBS Operations Inc., according to a 424B5 filing with the Securities and Exchange Commission.

Proceeds will be used for general corporate purposes, including the repurchase of shares of CBS’ outstanding common stock under the company’s authorized share repurchase program and the repayment of short-term debt.

CBS is a broadcasting company based in New York.

MUFG tightens

MUFG’s 3.85% notes due 2026 tightened 5 bps to 120 bps bid during the session, a market source said.

MUFG sold $2.5 billion of the notes (A1/A) on Feb. 23 at a spread of Treasuries plus 215 bps.

The financial services company is based in Tokyo.

Anheuser-Busch steady

Anheuser-Busch’s 3.65% notes due 2026 headed out flat to 1 bp tighter at 129 bps bid on Wednesday, a market source said.

The company sold $11 billion of the notes (A2/A-) on Jan. 13 at a spread of Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

Oracle eases

Oracle’s 2.65% notes due 2026 traded 8 bps weaker early in the session at 115 bps offered, a source said.

The company sold $3 billion of the notes on June 29 at Treasuries plus 120 bps.

The computer software and technology company is based in Redwood City, Calif.

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