World Bank, Cades bring new issues; Shell bonds tighten as oil prices rebound; Barclays firms

By Aleesia Forni

New York, Jan. 21 – World Bank and Caisse d'Amortissement de la Dette Sociale entered the primary market on Thursday, pricing a combined $8 billion of new issuance, as persistent market volatility pushed spreads mostly wider in the secondary market.

International Bank for Reconstruction and Development (World Bank) garnered an order book that was around 1.13 times oversubscribed for its $4.5 billion new issue that priced at the tight end of guidance.

And Cades offered $3.5 billion of three-year bonds in a Rule 144A and Regulation S sale.

Moving to the secondary market, Shell International Finance BV’s bonds traded tighter late Thursday as oil prices rebounded following a 12-year low.

Meanwhile, bank and financial paper traded around 3 basis points to 5 bps weaker on the day.

Barclays plc’s 5.25% bonds due 2045 and Lloyds Bank plc’s 2.7% bonds due 2020 each traded 5 bps tighter.

And AstraZeneca plc’s 3.375% senior notes due 2025 widened 4 bps during the session.

World Bank prices tight

World Bank priced $4.5 billion of 1.25% 3.5-year global bonds (Aaa/AAA) on Thursday at mid-swaps plus 26 bps, or Treasuries plus 34.7 bps, according to a market source and a bank news release.

Pricing was at 99.517 to yield 1.392%.

The notes sold at the tight end of price guidance.

Bookrunners were Barclays, J.P. Morgan Securities LLC, Nomura and TD Securities.

World Bank is based in Washington, D.C.

Cades sells $3.5 billion

Cades sold $3.5 billion of 1.5% three-year notes at mid-swaps plus 49 bps, a market source said.

The notes (Aa1/AA) sold in line with price talk on Thursday via Rule 144A and Regulation S.

BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities and Morgan Stanley & Co. LLC were the bookrunners.

The French debt agency is based in Paris.

Shell firms

Shell International Finance’s 2.125% notes due 2020 tightened 1 bp to 130 bps bid, according to a market source.

The company sold $2 billion of the five-year notes (A1/AA/) on May 6, 2015 at a spread of Treasuries plus 60 bps.

And its 4.3% notes due 2019 firmed 6 bps over the day to 98 bps bid.

Shell sold $2 billion of the notes on Sept. 15, 2009 at Treasuries plus 90 bps.

The company is a subsidiary of the Hague, the Netherlands-based Royal Dutch Shell plc.

Barclays better

Barclays’ 5.25% notes due 2045 firmed 5 bps on the day to 235 bps bid, a source said.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at a spread of Treasuries plus 235 bps.

The financial services company is based in London.

Lloyds tightens

Lloyds Bank’s existing 2.7% bonds due Aug. 17, 2020 were 5 bp better on the day at 95 bps bid.

The $1 billion of notes priced with a 110 bps spread over Treasuries on Aug. 10.

AstraZeneca widens

AstraZeneca’s 3.375% notes due 2025 traded 4 bp wider at 150 bps bid in the secondary market, a source said.

The company sold $2 billion of the notes (A2/A) on Nov. 10 at a spread of Treasuries plus 115 bps.

The biopharmaceutical company is based in London.

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