Scotiabank, ANZ, Municipality Finance price; deal calendar takes shape; Whole Foods firms

By Cristal Cody

Tupelo, Miss., July 11 – Several corporate and SSA bonds priced in the high-grade primary market on Tuesday.

Bank of Nova Scotia sold $1.5 billion of dollar-denominated senior notes in two tranches.

ANZ New Zealand International Ltd. priced a $1 billion two-part offering of senior notes.

Takeda Pharmaceutical Co., Ltd. came with $500 million of dollar-denominated 4.5-year notes.

In the SSA space, Municipality Finance plc sold $1 billion of long three-year senior bonds.

International Finance Corp. priced $500 million of global floating-rate notes due Dec. 15, 2022 on top of talk.

Looking to Wednesday’s primary action, European Bank for Reconstruction and Development (Aaa/AAA/AAA) plans to price $500 million of new three-year global floating-rate notes, according to a market source. The notes due July 19, 2020 were initially talked to price in the Libor plus 1 basis point area. BofA Merrill Lynch, HSBC Bank plc and RBC Capital Markets, LLC are the lead managers.

Mitsui Fudosan Co., Ltd. (A2/A/) held global investor calls on Tuesday in advance of a benchmark sized dollar-denominated offering of 10-year notes, a source said. BofA Merrill Lynch and Nomura are the arrangers.

In addition on Tuesday, SMBC Aviation Capital Ltd. (/BBB+/A-) wrapped a two-day round of fixed-income investor calls ahead of a possible bond offering.

Citigroup Global Markets Inc., Credit Agricole Corporate and Investment Bank, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and RBC Capital Markets are the arrangers.

In secondary market activity, Whole Foods Market Inc.’s 5.2% notes due Dec. 3, 2025 tightened about 7 bps on Tuesday.

Kroger Co.’s senior notes (Baa1/BBB/BBB) were mixed.

The Markit CDX North American Investment Grade index closed modestly softer at a spread of 62 bps.

Scotiabank sells two tranches

Bank of Nova Scotia (A1/A+/AA-) sold $1.5 billion of dollar-denominated senior notes in two parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

Scotiabank placed $400 million of three-year floating-rate notes at par to yield Libor plus 39 bps.

The bank priced $1.1 billion of 2.15% three-year fixed-rate notes at 99.986 to yield 2.155% and a spread of Treasuries plus 60 bps.

Scotia Capital (USA) Inc., BofA Merrill Lynch, HSBC Securities (USA) Inc. J.P. Morgan Securities, Morgan Stanley & Co. LLC, Citigroup Global Markets, Goldman Sachs, UBS Securities LLC and Barclays were the bookrunners.

Proceeds will be used by the Toronto-based bank for general business purposes.

ANZ in primary

ANZ New Zealand International sold $1 billion of senior notes (A1/AA-/AA-) in two tranches on Tuesday, according to a market source.

The company placed $500 million of 2.2% three-year notes at a spread of Treasuries plus 70 bps, on the tight side of talk in the Treasuries plus 75 bps area, plus or minus 5 bps.

ANZ New Zealand priced $500 million of 3.45% 10-year notes with a Treasuries plus 112 bps spread. The notes were talked to price in the Treasuries plus 115 bps area, plus or minus 3 bps.

ANZ Securities Inc., BofA Merrill Lynch, J.P. Morgan Securities and RBC Capital Markets were the lead managers.

ANZ New Zealand is an Auckland, New Zealand-based funding arm of ANZ Bank New Zealand Ltd.

Takeda brings notes

Takeda Pharmaceutical (A1/A-/) priced $500 million of dollar-denominated 2.45% notes due Jan. 18, 2022 in a Rule 144A and Regulation S sale on Tuesday at a spread of Treasuries plus 55 bps, a market source said.

The notes were talked to price in the Treasuries plus 60 bps area, plus or minus 5 bps.

Citigroup Global Markets, Goldman Sachs, J.P. Morgan Securities, Morgan Stanley and Nomura Securities International, Inc. were the lead managers.

Takeda Pharmaceutical held investor calls in the U.S., Europe and Asia markets on Monday for the offering.

The pharmaceutical company is based in Osaka, Japan.

Municipality Finance prices

Municipality Finance (Aa1/AA+/) priced $1 billion of 1.875% senior bonds due Sept. 18, 2020 at 99.992 and a spread of Treasuries plus 30.05 bps on Tuesday, according to a market source and a London Stock Exchange news release.

The notes were talked to price in the mid-swaps plus 9 bps area.

Nomura International plc, London Branch, Deutsche Bank Securities Inc., Daiwa Capital Markets and TD Securities (USA) LLC were the lead managers of the Rule 144A and Regulation S offering.

The deal includes an over-allotment option of 5% of the $1 billion amount.

The notes are guaranteed by MGB, or the Municipal Guarantee Board, a public law body that develops the joint funding of Finnish municipalities.

Municipality Finance is a Helsinki, Finland-based credit institution that provides funding for the public sector in Finland.

International Finance sells floaters

International Finance (Aaa/AAA) sold $500 million of global floating-rate notes due Dec. 15, 2022 on top of talk at Libor plus 7 bps on Tuesday, according to a market source.

Citigroup Global Markets, Deutsche Bank Securities Inc. and Nomura Securities International were the bookrunners.

Washington, D.C.-based International Finance is a member of the World Bank Group.

Whole Foods firms

Whole Foods Market’s 5.2% notes due Dec. 3, 2025 (Baa3/BBB-/) firmed about 7 bps in secondary trading on Tuesday to 84 bps bid, according to a market source.

The company’s bonds tightened about 85 bps on June 16 to 92 bps bid after Amazon.com, Inc. announced it will purchase the natural and organic foods grocer for $13.7 billion in cash.

Austin, Texas-based Whole Foods sold $1 billion of the notes on Nov. 30, 2015 at a Treasuries plus 300 bps spread.

Kroger mixed

Kroger’s 2.65% notes due Oct. 15, 2026 firmed about 2 bps to 132 bps bid on Tuesday, a market source said.

Kroger sold $750 million of the notes on Sept. 26 at a spread of 110 bps over Treasuries.

The company’s 4.45% notes due Feb. 1, 2047 softened about 6 bps to 184 bps bid.

The Cincinnati-based grocery retailer sold $1 billion of the bonds on Jan. 17, 2017 at a spread of 150 bps over Treasuries.

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