Yankee issuers dominate as Rentenbank, British Columbia price; investor demand strong

By Aleesia Forni and Andrea Heisinger

New York, Oct. 16 - Yankee issuers filled the high-grade bond market on Tuesday as many corporates remain on the sidelines during earnings blackout.

Landwirtschaftliche Rentenbank sold $1.25 billion of seven-year bonds after the offering went overnight from Monday.

The Province of British Columbia also priced $1.25 billion of 10-year notes in line with guidance a day after the sale was announced.

Sydney Airport Finance Corp. Holdings Pty. Ltd. priced $600 million of senior notes due 2023 after the offering was upsized from $500 million.

A private offering of five-year notes is being prepared by Sweden's Kommuninvest i Sverige. Pricing is expected on Wednesday.

Goldman Sachs Group Inc. kept the streak of positive third-quarter earnings announcements by big banks alive. The financial giant posted earnings of $1.5 billion, or $2.85 per share, in Q3, which was better than analysts had predicted. This was also a reversal from the same period a year ago, when Goldman had a loss of $428 million.

Issuers wishing to price bonds will likely do so on Wednesday ahead of a summit of euro zone countries that begins on Thursday, a syndicate source said. It's expected that some sort of bailout plan for Spain will come to light.

"I think the debate also kept people out," the source said, referring to Tuesday night's second presidential candidate debate.

There was "not much going on" in the secondary market on Tuesday, one trader said late in the session, though he added, "Investors still want in."

The secondary saw JPMorgan Chase & Co.'s $2.25 billion of 1.1% fixed-rate notes at 72 bps offered during the session. This followed Monday's pricing with a spread of Treasuries plus 77 bps.

The financial services company is based in New York City.

British Columbia 10-years

The Province of British Columbia priced an upsized $1.25 billion trade of 2% 10-year notes at a spread of mid-swaps plus 31 bps, or Treasuries plus 35.15 bps, according to an FWP with the Securities and Exchange Commission on Tuesday.

The notes (Aaa/AAA/) were sold in line with guidance given late on Monday in the mid-swaps plus low 30 bps area. The size was increased from a minimum of $500 million.

Bookrunners were CIBC World Markets Corp., HSBC Capital (USA) Inc., National Bank Financial Inc. and Scotia Capital (USA) Inc.

Rentenbank's $1.25 billion

Landwirtschaftliche Rentenbank priced its $1.25 billion sale of 1.375% seven-year notes on Tuesday at a spread of mid-swaps plus 22 basis points, or Treasuries plus 33.3 bps, an informed source said.

The notes (Aaa/AAA/AAA) were sold tighter than guidance given Monday in the mid-swaps plus 25 bps area.

Pricing was at 99.456. There is no call option.

Active bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC. Passives were Credit Agricole Securities, DZ Bank and TD Securities (USA) LLC.

Proceeds will be used to finance lending activities.

The German development agency for agribusiness is based in Frankfurt.

Sydney Airport upsizes

Sydney Airport Finance Corp. Holdings priced an upsized $600 million of 3.9% senior notes due 2023 at Treasuries plus 220 bps, a market source told Prospect News.

The notes (Baa2/BBB/BBB) were sold under Rule 144A and Regulation S. The size of the trade was increased from $500 million.

Bookrunners were Bank of America Merrill Lynch, BNP Paribas Securities Corp., J.P. Morgan Securities LLC and RBS Securities Inc.

The deal is guaranteed by Southern Cross Airports Corp. Holdings Pty. Ltd.

The financing company is based in Sydney, Australia.

Kommuninvest five-years

Kommuninvest i Sverige announced a sale of five-year notes, a market source said.

The sale is expected to go overnight and be Wednesday business, a source said.

The notes (Aaa/AAA/) are being sold by bookrunners Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBS Securities Inc.

Kommuninvest offers funding to municipalities of Sweden and is based in Orebro.

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