Morning Commentary: Aker, Nomura, Jabil, Georgia Power, Credit Agricole, IBRD on deck

By Cristal Cody

Tupelo, Miss., Jan. 8 – Investment-grade issuers continue to pour into the primary market with a number of deals on deck for Wednesday’s session.

Aker BP ASA is marketing a Rule 144A and Regulation S offering of senior notes.

Nomura Holdings, Inc. is offering registered fixed-rate senior notes due 2025 and 2030.

Jabil Inc. plans to price registered fixed-rate senior notes.

Georgia Power Co. intends to sell three tranches of new and reopened senior notes.

The offering includes new notes due July 30, 2023 that are initially talked to price with a spread in the Treasuries plus 70 basis points area and notes due Jan. 30, 2050 that are initially talked to print in the Treasuries plus 150 bps to 155 bps area.

Georgia Power also plans to reopen its 2.65% notes due Sept. 15, 2029. Initial price talk is in the Treasuries plus 110 bps area.

The company originally sold $350 million of the notes on Sept. 4, 2019 at 99.877 to yield 2.664%, or a spread of 120 bps over Treasuries.

Ares Capital Corp. is marketing a dollar-denominated offering of five-year senior notes with initial talk in the Treasuries plus 190 bps area.

Credit Agricole SA is on deck with a dollar-denominated offering of subordinated notes due Jan. 14, 2030. Initial price talk is in the Treasuries plus 175 bps area.

Meanwhile, Nederlandse Waterschapsbank NV, or NWB Bank, launched a $2 billion offering of five-year notes at mid-swaps plus 16 bps at the start of the day, tighter than initial guidance in the mid-swaps plus 18 bps area.

Also, the International Bank for Reconstruction and Development, or World Bank, intends to price global notes due Jan. 15, 2025 during the session. The notes are initially talked to print with a spread in the mid-swaps plus 9 bps area.

In addition, Israel is expected to price a two-tranche offering of dollar-denominated fixed-rate notes on Wednesday following a roadshow at the start of the week.

The deal includes notes due Jan. 15, 2030 with initial price talk in the Treasuries plus 75 bps area and notes due Jan. 15, 2050. Initial price talk on the 2050 notes is in the Treasuries plus 120 bps area.

In new issuance so far on Wednesday, Fannie Mae priced $3 billion of 1.625% five-year notes at a spread of 8 bps over Treasuries.

Several other issuers also are marketing new bond deals, sources report.

Deal volume already totals more than $40 billion from the first two sessions of the week.

In the secondary market, new corporate issues priced so far this week are mixed but trading on average more than 2 bps tighter than issuance, a source said.

Overall corporate trading volume rose to $22.36 billion on Tuesday from $17.60 billion on Monday, according to Trace data.

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