KfW prices upsized $1.5 billion green notes; Duke Energy, Time Warner firm; Abbott eases

By Cristal Cody

Eureka Springs, Ark., Nov. 22 – KfW priced an upsized $1.5 billion of global notes on Tuesday as the sole high-grade bond issuer in the U.S. primary market.

The issuer priced $1.5 billion of 2% five-year global notes at 99.749 and a spread of Treasuries plus 28.4 basis points.

The green notes were talked to price in the mid-swaps plus 31 bps area.

The deal was upsized from $1 billion.

BofA Merrill Lynch, Goldman Sachs International and Societe Generale were the bookrunners.

In the Canadian primary market, CI Financial Corp. priced C$200 million of 2.775% five-year debentures at par to yield a spread of 177 basis points over the interpolated Government of Canada bond curve.

“Tomorrow is still a good day, certainly opportunities for issuance, but that would likely be it for the week,” a Canadian syndicate source said.

The U.S. bond markets will be closed on Thursday for the Thanksgiving Day holiday and will close early on Friday.

The Markit CDX North American Investment Grade index tightened 2 bps to close the day at a spread of 74 bps.

In the secondary market, Duke Energy Corp.’s 2.65% senior notes due 2026 traded about 3 bps better on Tuesday.

AT&T Inc.’s 4.125% notes due 2026 were modestly better, and Time Warner Inc.’s 2.95% notes due 2026 firmed about 3 bps.

Abbott Laboratories’ tranche of 3.75% notes due 2026 traded softer earlier in the day.

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