Royal Bank of Scotland, Swedish Export Credit price; Ontario, Kommuninvest eye deals

By Cristal Cody

Tupelo, Miss., May 10 – Strong investment-grade bond issuance continued on Wednesday with issuers pricing more than $8 billion of bonds during the session.

Royal Bank of Scotland Group plc sold $3 billion of six-year fixed-rate/floating-rate and floating-rate notes.

Swedish Export Credit Corp. brought $1.5 billion of three-year global notes to the primary market.

Export Development Canada placed $1.25 billion of five-year notes.

The Council of Europe Development Bank sold $1 billion of two-year senior global notes.

In other corporate issuance, State Street Corp. priced $750 million of six-year fixed-to-floating rate notes.

Nstar Electric Co., doing business as Eversource Energy, sold $350 million of 10-year debentures.

Also, Select Income REIT priced an upsized $350 million offering of seven-year senior notes.

Looking ahead to primary action on Thursday, the Province of Ontario is expected to price an offering of five-year global notes.

Also ahead later in May, Kommuninvest I Sverige AB is preparing for a round of global investor calls for a dollar-denominated bond offering.

The Markit CDX North American Investment Grade index ended the day about 1 basis point tighter at a spread of 61.7 bps.

RBS sells $3 billion

Royal Bank of Scotland Group (A3/BBB-/BBB+) priced a $3 billion offering of six-year fixed-rate/floating-rate and floating-rate notes on Wednesday, according to a market source.

Royal Bank of Scotland sold $1.5 billion of six-year floating-rate notes at Libor plus 147 bps.

The notes were talked to price in the Libor plus 150 bps area, plus or minus 3 bps.

The bank priced $1.5 billion of 3.498% six-year fixed-to-floating rate notes at a spread of Treasuries plus 157 bps. The notes are non-callable for five years and convert to a floating rate of Libor plus 148 bps.

The fixed/floaters were talked to price at the Treasuries plus 160 bps area, plus or minus 3 bps.

Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, NatWest Markets and UBS Investment Bank were the bookrunners.

Both tranches will have par calls, according to a 424B5 filed with the Securities and Exchange Commission on Tuesday.

Proceeds will be used to fund the company’s general banking business.

Royal Bank of Scotland Group is a banking and financial services company based in Edinburgh, Scotland.

Swedish Export prices

Swedish Export Credit (Aa1/AA+) priced a $1.5 billion offering of 1.75% three-year global notes on Wednesday at 99.741 to yield 1.839%, according to an FWP filing with the SEC.

Citigroup Global Markets Inc., Mizuho International plc, Royal Bank of Scotland plc and Toronto-Dominion Bank were the lead managers.

The company will apply to list the notes on the Irish Stock Exchange.

Swedish Export Credit is a Stockholm-based financial services company for the Swedish export industry.

EDC brings $1.25 billion

Export Development Canada (Aaa/AAA) priced $1.25 billion of 2% five-year notes at a spread of 14.45 bps over Treasuries on Wednesday, according to an FWP filing with the SEC.

The notes priced at 99.759 to yield 2.051%.

BMO Capital Markets Corp., Citigroup, BofA Merrill Lynch and RBC Capital Markets, LLC were the bookrunners.

Proceeds from the sale will be used for general corporate purposes.

Ottawa-based Export Development Canada is a Canadian government-owned export credit agency.

Council of Europe sells notes

The Council of Europe Development Bank (Aa1/AA+/AA+) sold $1 billion of 1.5% senior global notes due May 17, 2019 at 99.927 to yield 1.537%, according to an FWP filing with the SEC on Wednesday.

The notes priced at mid-swaps plus 6 bps, or a spread of Treasuries plus 19.75 bps.

The notes were initially talked to price in the mid-swaps plus 4 bps area, a source said.

BNP Paribas Securities Corp., Morgan Stanley, Nomura Securities International, Inc. and Societe Generale were the lead managers.

The Paris-based Council of Europe Development Bank finances social projects to member states, financial institutions and local authorities for projects including public infrastructure and low-income housing.

State Street sells fixed/floaters

State Street priced $750 million of 2.653% six-year fixed-to-floating rate notes (A1/A/AA-) at par to yield a spread of Treasuries plus 72 bps on Wednesday, according to a market source and an FWP filing with the SEC.

The notes were talked to price in the Treasuries plus 75 bps area, plus or minus 3 bps.

The issue converts to a floating rate of Libor plus 63.5 bps from and including May 15, 2022 to but excluding the maturity date.

Morgan Stanley, BofA Merrill Lynch, Goldman Sachs & Co. and UBS Securities LLC were the bookrunners.

The company plans to use the proceeds for general corporate purposes.

State Street is a Boston-based financial holding company.

Nstar Electric sells bonds

Nstar Electric, doing business as Eversource Energy, sold $350 million of 3.2% debentures due May 15, 2027 on Wednesday at a spread of 80 bps over Treasuries, according to an FWP filing with the SEC.

The debentures (A2/A/A+) priced at 99.924 to yield 3.209%.

BofA Merrill Lynch, MUFG and RBC Capital Markets were the bookrunners.

Proceeds will be used to repay short-term debt, for capital expenditures and for working capital.

The Boston-based company is engaged in the energy delivery business through utility subsidiaries.

Select Income REIT prints

Select Income REIT sold an upsized $350 million of 4.25% seven-year senior notes (Baa2/BBB-) on Wednesday at 98.684 to yield 4.471%, according to a market source and an FWP filing with the SEC.

The notes priced in line with guidance at a spread of 225 bps over Treasuries.

The deal was upsized from $300 million.

BofA Merrill Lynch, RBC Capital Markets, UBS Securities, Wells Fargo Securities LLC, BBVA Securities Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

Proceeds will be used to repay borrowings under the company’s revolving credit facility and for general business purposes.

Select Income REIT is a Newton, Mass.-based real estate investment trust, which owns properties that are primarily net leased to single tenants.

Ontario offers notes

The Province of Ontario (Aa2/A+/AA-) plans to price an offering of five-year global notes on Thursday, according to a market source.

The notes due May 18, 2022 were talked to price in the high 20 bps area over mid-swaps.

Barclays, CIBC World Markets Inc., Goldman Sachs and J.P. Morgan Securities LLC are the lead managers.

Kommuninvest mulls deal

Kommuninvest (Aaa/AAA) plans to hold global investor calls for a dollar-denominated Rule 144A and Regulation S four-year green bond offering, a market source said on Wednesday.

Credit Agricole CIB, HSBC and JPMorgan are arranging the calls set to start on Monday.

Kommuninvest is an Orebro-based company that offers funding to municipalities of Sweden.

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