KfW prices $4 billion notes; Ontario sells $2.5 billion; TransCanada brings $400 million

By Devika Patel

Knoxville, Tenn., Oct. 10 – Primary activity in the investment-grade bond market picked up on Wednesday with three new deals pricing and two more announced.

Frankfurt-based government-backed bank KfW launched and priced $4 billion of 3.125% global notes due Dec. 15, 2021.

Canada’s Province of Ontario priced $2.5 billion of 3.4% five-year bonds.

Calgary, Alta., pipeline and storage company TransCanada PipeLines Ltd. sold a $400 million add-on to its 4.25% senior notes due May 15, 2028.

Meanwhile, Tokyo-based banking and financial company Sumitomo Mitsui Financial Group Inc. said it will conduct a two-tranche offering of dollar-denominated senior notes and Washington, D.C.-based Federal Home Loan Bank System said it will issue a Global bond due Oct. 12, 2021.

KfW sells $4 billion

KfW priced $4 billion of 3.125% global notes Dec. 15, 2021 on Wednesday at 99.898.

BofA Merrill Lynch, Nomura Securities International, Inc. and TD Securities (USA) LLC are the lead managers.

The notes will be guaranteed by the Federal Republic of Germany.

Ontario prices $2.5 billion

Ontario sold $2.5 billion of 3.4% five-year bonds (Aa2/A+/AA-/AA low) on Wednesday at 99.845 to yield 3.434%.

The bonds priced with a spread of mid-swaps plus 25 basis points.

The underwriters were Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., Scotia Capital (USA) Inc., BMO Capital Markets Corp., National Bank of Canada Financial Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC.

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

TransCanada prices

TransCanada priced a $400 million add-on to its 4.25% senior notes (A3/BBB+/A-) due May 15, 2028.

TransCanada priced the new notes at 98.533 to yield 4.439%, or 120 bps over Treasuries.

The company issued $1 billion of the notes at 99.611 to yield 4.298% with a spread of 135 bps over Treasuries on May 7 in a sale that priced on May 3.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. were the bookrunners for the reopening.

Sumitomo Mitsui offers notes

Sumitomo Mitsui intends to offer dollar-denominated senior notes in two tranches.

The notes will be sold in one fixed-rate tranche and one floating-rate tranche.

The notes are not callable.

SMBC Nikko, Goldman Sachs, Barclays and Citigroup are the bookrunners.

Proceeds will be used to extend senior unsecured loans to subsidiary SMBC Nikko, which will use the proceeds of the loans for general corporate purposes.

FHLBank bonds on tap

FHLBank said it intends to price a new Global bond due Oct. 12, 2021 on Thursday.

Barclays, Citigroup and Nomura are the lead managers. Co-managers are Deutsche, HSBC Securities (USA) Inc., JPMorgan, MFR Securities, BofA Merrill Lynch, TD Securities and Wells Fargo Securities LLC.

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