Morning Commentary: Diageo, RBC, Avista, Swedish Export Credit on tap; Air Lease, Eni hold calls

By Cristal Cody

Tupelo, Miss., May 15 – Investment-grade primary market action opened on a busy note Tuesday with several deals set to price and others being marketed during the session.

Diageo Capital plc is on deck with a four-tranche offering of guaranteed notes.

Royal Bank of Scotland Group plc intends to price fixed-to-floating rate notes due 2029.

Avista Corp. is offering first mortgage bonds.

Swedish Export Credit Corp. plans to price three-year global medium-term notes that were initially talked to price in the mid-swaps plus 12 basis points area, a source said.

Kommuninvest I Sverige AB also is offering a benchmark-sized issuance of notes due March 1, 2021 that was initially talked to price on Wednesday in the mid-swaps plus 8 bps area, according to a market source.

In other market activity, Air Lease Corp. is scheduled to hold fixed income investor calls beginning Tuesday for an offering of subordinated notes.

Eni SpA will resume its roadshow for a Rule 144A and Regulation S dollar-denominated senior note offering in New York on Tuesday. The company’s investor meetings started in Boston on Monday and will continue with fixed income investor calls through Thursday.

ASB Bank Ltd. kicked off a roadshow on Monday for a Rule 144A and Regulation S dollar-denominated offering of five-year notes that will continue through Thursday in Asia and will move to the United States for investor meetings from Thursday through May 24.

Also coming up Wednesday, Vodafone Group plc will start a roadshow for a dollar-denominated multiple-tranche offering of notes.

About $30 billion to $35 billion of supply is forecast by market sources for the week.

High-grade volume was heavy on Monday with more than $17 billion of bonds priced. The day’s largest deal was an $8 billion six-tranche bond offering to fund the merger with Keurig Green Mountain Inc. and Dr Pepper Snapple Group, Inc.

More than $44 billion of investment-grade bonds priced in the previous week.

In the secondary market, investment-grade trading volume on Monday totaled $15.99 billion, according to Trace data.

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