Morning Commentary: Societe Generale, Mondelez, Guardian Life, EBRD plan primary tap

By Cristal Cody

Tupelo, Miss., June 30 – A few issuers are expected to tap the high-grade primary market on Tuesday following $12.5 billion of issuance on Monday, sources report.

Societe Generale SA (A1/A/A) is offering two tranches of senior medium-term notes during the session.

The deal includes five-year notes with initial price talk at the Treasuries plus 125 basis points to 130 bps area and 15-year notes talked to print at the 310 bps spread area.

Mondelez International, Inc. intends to bring an offering of two-year notes (Baa1/BBB) to the market on Tuesday. Initial price talk is in the 80 bps to 85 bps over Treasuries area.

Guardian Life Global Funding is offering $350 million of seven-year notes (Aa2/AA+) with initial price talk at the Treasuries plus 105 bps to 110 bps area.

Also on Tuesday, European Bank for Reconstruction and Development (Aaa/AAA/AAA) launched a $1 billion offering of three-year global notes on top of talk at mid-swaps plus 7 bps.

Volume was strong on Monday, led by Takeda Pharmaceutical Co., Ltd.’s $7 billion four-part offering of senior notes (Baa2/BBB+) and Sumitomo Mitsui Financial Group Inc.’s $3 billion two-tranche sale of senior notes (A1/A-).

About $10 billion to $15 billion of issuance was expected by market participants ahead of the Independence Day holiday.

Market tone was mostly positive at the start of Tuesday’s session, the last day of the second quarter.

The iShares iBoxx Investment Grade Corporate Bond ETF was up 0.18% at 134.36.

The Pimco Investment Grade Corporate Bond index rose 0.33% to 114.45 over the morning.

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