Japan Bank, Bank of Montreal, International Finance in primary; Anheuser-Busch flat on day

By Cristal Cody

Eureka Springs, Ark., July 13 – Investment-grade issuers priced more than $8 billion of bonds on Wednesday, while details emerged about Teva Pharmaceutical Industries Ltd.’s expected debt offering.

Japan Bank for International Cooperation sold $3 billion of guaranteed senior bonds (A1/A+/) in two parts on Wednesday.

Bank of Montreal tapped the market with a $3 billion two-tranche offering of senior medium-term notes.

International Finance Corp. priced $2.5 billion of five-year notes.

Teva Pharmaceutical Industries is expected to price more than $20 billion of notes in different currencies to fund its acquisition of Allergan plc’s generic medicine business.

Investment-grade bonds were mixed in secondary trading.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 traded flat on the day but have come in more than 10 basis points from a week ago.

Australia and New Zealand Banking Group, Ltd.’s 2.3% notes due 2021 that were reopened on Monday traded 4 bps better early in the session on Wednesday.

The Markit CDX North American Investment Grade index closed unchanged to modestly softer at a spread of 71 bps.

Japan Bank prices $3 billion

Japan Bank for International Cooperation sold $3 billion of guaranteed senior bonds (A1/A+/) in two parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The bank brought $1.5 billion of 1.5% guaranteed bonds due July 21, 2021 at 99.526 to yield 1.599% and a spread of 54.7 bps over Treasuries.

Japan Bank sold $1.5 billion of 1.875% guaranteed bonds due July 21, 2026 at 99.475 to yield 1.933%. The notes priced with a spread of 46.7 bps plus Treasuries.

Citigroup Global Markets Inc., BofA Merrill Lynch, BNP Paribas Securities Corp. and Nomura International plc were the bookrunners.

The notes are guaranteed by Japan.

Proceeds will be used for the bank’s financing operations.

The financial institution is based in Tokyo.

Bank of Montreal prices

Bank of Montreal priced $3 billion of series C senior medium-term notes in two parts on Wednesday, according to a market source.

The bank sold $400 million of floating-rate notes due July 18, 2019 at Libor plus 65 bps.

Bank of Montreal priced $1.6 billion of 1.5% three-year notes at Libor plus 75 bps, on the tight side of guidance in the 80 bps area.

BMO Capital Markets Corp., Citigroup, Goldman Sachs & Co. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be contributed to the bank’s general funds and used for general corporate purposes, according to a 424B2 filing with the SEC.

The financial services company is based in Toronto.

International Finance too

International Finance priced $2.5 billion of 1.125% notes due July 20, 2021 at 17.45 bps over Treasuries on Wednesday, according to a market source.

The managers were Barclays, BMO Capital Markets Corp., J.P. Morgan Securities plc and Nomura Securities International, Inc.

Washington, D.C.-based International Finance is a member of the World Bank Group.

Teva to tap markets

Teva Pharmaceutical Industries (Baa1/BBB/BBB+) plans to wrap its U.S. roadshow on Thursday before moving to London on Monday and Frankfurt, Munich and Paris on Tuesday, according to a 6-K filing with the SEC on Wednesday.

Senior benchmark-sized debt offerings in U.S., euro and/or Swiss franc denominations are expected to follow.

Barclays, BofA Merrill Lynch, BNP Paribas, Credit Suisse, HSBC and Mizuho Securities USA Inc. are arranging the calls.

Teva said when it announced the acquisition on July 27, 2015 that $33.75 billion of cash for the takeover will be financed through new equity, debt and cash on hand. The company reported it secured a $33.75 billion bridge facility commitment to fund the acquisition, including $27 billion of debt under a senior bridge loan credit facility and $6.5 billion of equity under an equity bridge loan credit facility.

Teva is a pharmaceutical company based in Jerusalem.

Anheuser-Busch flat

Anheuser-Busch’s 3.65% notes due 2026 were unchanged on the day at 114 bps offered, according to a market source.

The notes have been mostly flat over the week but have tightened more than 10 bps from a week ago.

The company sold $11 billion of the notes (A2/A-) on Jan. 13 at a spread of Treasuries plus 160 bps.

The brewery is based in Leuven, Belgium.

ANZB firms

Australia and New Zealand Banking Group’s 2.3% notes due 2021 firmed 4 bps to 91 bps offered in secondary trading early in the session, a market source said.

The company priced a $500 million tap of the notes (Aa2/AA-/AA-) on Monday at 97 bps over Treasuries.

The financial services company is based in Melbourne.

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