Morning Commentary: Japan Bank offers two tranches; European Investment Bank on tap

By Cristal Cody

Tupelo, Miss., Oct. 23 – At least two high-grade issuers prepared on Tuesday to tap the primary market with new bond issues.

Japan Bank for International Cooperation is marketing two tranches of dollar-denominated guaranteed bonds registered with the Securities and Exchange Commission.

Goldman Sachs International, BofA Merrill Lynch, Daiwa Capital Markets Europe Ltd. and Nomura International plc are the bookrunners.

Also, the European Investment Bank (Aaa/AAA/AAA) is expected to bring a $3 billion offering of global notes due Dec. 14, 2023 to the primary market.

The notes were initially talked to price in the mid-swaps plus 7 basis points area.

Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the lead managers.

Volume is expected to be on the lighter side this week with market sources calling for about $15 billion to $20 billion of high-grade supply. Deal volume also was thin last week with less than $20 billion of total corporate and SSA issuance.

On Monday, Constellation Brands, Inc. priced a $2.15 billion four-part offering of senior notes and KeyCorp sold $500 million of seven-year senior medium-term notes.

The secondary market saw $16.4 billion of investment-grade issues traded in the previous session, Trace data shows.

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