Japan Finance prices $1 billion; Canada primary market active; American Express mixed

By Cristal Cody

Tupelo, Miss., April 12 – Japan Finance Organization for Municipalities brought $1 billion of five-year global medium-term notes to the high-grade primary market on Wednesday in the last full session of the week.

More than $7 billion of bonds have priced week to date, with market sources expecting about $10 billion of supply for the short week. The bond markets will close early on Thursday and will be closed for the full day on Friday for the Good Friday holiday.

The Canadian high-grade primary market was active on Wednesday with two new deals.

Inter Pipeline Ltd. priced C$500 million of 2.734% seven-year senior medium-term notes at par to yield a spread of 139 basis points over the interpolated Government of Canada bond curve.

Canadian Real Estate Investment Trust priced C$125 million of 2.951% senior debentures due Jan. 18, 2023 at 99.997 to yield 2.952%, or a spread of 174 bps over the interpolated Government of Canada bond curve.

The bond markets are expected to be mostly quiet on Thursday with the early market close, but the Canada primary market might see a transaction, a syndicate source said.

“It’s surprising on a half day, but it could happen,” the source said. “I wouldn’t be surprised if they decided to not come.”

The Markit CDX North American Investment Grade index softened 1 bp on Wednesday to a spread of 68 bps.

Corporate bonds were mixed in the secondary market.

Citigroup, Inc.’s 4.75% subordinated notes due May 18, 2046 traded about 1 bp softer on Wednesday.

American Express Credit Corp.’s notes (A2/A-/A) were mixed in secondary trading.

Mitsubishi UFJ Financial Group, Inc.’s 3.677% senior notes due Feb. 22, 2027 traded about 1 bp weaker over the day.

Japan Finance sells $1 billion

Japan Finance Organization for Municipalities sold $1 billion of 2.625% five-year global medium-term notes at 99.823 to yield 2.663% in a Rule 144A and Regulation S offering, according to a final terms sheet on Wednesday.

The series 57 notes (A1/A+) are due April 20, 2022.

The Japan Finance Organization for Municipalities is a Tokyo-based funding organization for Japanese local governments.

Citigroup eases

Citigroup’s 4.75% subordinated notes due May 18, 2046 (Baa3/BBB/A-) eased about 1 bp to 185 bps bid on Wednesday, according to a market source.

The notes were priced on Feb. 7 in a $750 million add-on at a spread of 173 bps over Treasuries.

Citigroup originally sold $1 billion of the notes on May 11, 2016 at 98.927 to yield 4.818%, or Treasuries plus 225 bps.

The financial services company is based in New York.

American Express mixed

American Express Credit’s 2.2% notes due March 3, 2020 firmed 1 bp to 59 bps on Wednesday, according to a market source.

The company priced $2 billion of the notes on Feb. 28 at a spread of Treasuries plus 72 bps.

American Express Credit’s 2.7% notes due March 3, 2022 widened about 4 bps over the day to the 79 bps area.

The five-year notes priced on Feb. 28 in a $1.75 billion tranche at a Treasuries plus 82 bps spread.

American Express Credit is a New York City-based credit card services provider.

MUFG softens

MUFG’s 3.677% notes due Feb. 22, 2027 eased about 1 bp to 109 bps bid on Wednesday, a market source said.

The $1 billion tranche of 10-year notes (A1/A/A) priced on Feb. 15 at a Treasuries plus 118 bps spread.

The bank is based in Tokyo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.