Morning Commentary: EBRD offers add-on to floaters; LeasePlan to hold deal roadshow

By Cristal Cody

Tupelo, Miss., Oct. 10 – One reported investment-grade issuer marketed a bond offering early Thursday.

European Bank for Reconstruction and Development is offering a $350 million tap of its global floating-rate notes due Aug. 19, 2022 that were first priced on Aug. 21.

Initial price talk is at the SOFR plus 26 basis points area.

Corporate supply has slowed this week, while sovereign, supranational and agency volume has soared.

Week to date, corporate supply totals about $9 billion, while SSA volume totals more than $17 billion.

The quiet start to Thursday’s session followed heavy SSA volume on Wednesday that included a $7 billion three-part deal from Italy and a $1 billion issue of three-year global notes from Nordic Investment Bank.

Meanwhile, a corporate bond offering is on the horizon from LeasePlan Corp. NV.

The Amsterdam, Netherlands-based automobile leasing company is expected to hold a roadshow in London and the U.S. markets in the week ahead for dollar-denominated five-year notes.

Corporate supply is expected to remain light over October as issuers enter earnings blackout reporting periods, sources note.

The major U.S. banks will start to release third-quarter earnings reports in the week ahead.

Elsewhere, new issues are trading mostly tighter in the secondary market, a source said.

Bank of Nova Scotia’s $1 billion of 2% senior bail-inable notes due Nov. 15, 2022 (A2/A-/AA-) improved 3 bps after the notes priced on Wednesday.

Scotiabank sold the notes at a spread of 60 bps over Treasuries.

Initial price talk was in the 75 bps spread area.

Overall secondary market volume totaled $16.59 billion on Wednesday, compared to $18.35 billion on Tuesday and $16.18 million on Monday, according to Trace data.

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