Andermatt will be represented by Samih
O. Sawiris, chairman of the board of
directors and majority shareholder, Khaled
"ICHARA ûCHIEFûEXECUTIVEûOFlCERûAI ûANDû
-ELINAû-ARTY ûCHIEFûlNANCIALûOFlCER
NON-CORE CURRENCIES
PACCAR RETURNS WITH A$150m MTNPACCAR FINANCIAL ûRATEDû! ûBYû30 ûISSUEDûITSû
SECONDû-4.ûOFFERINGûLASTû7EDNESDAYûWITHûAû
A$150m four-year sale arranged by joint
lead managers ANZ and Westpac.
The 2.10% June 13 2023s were priced at
99.952 for a reoffer yield of 2.1125%, inside
90bp–93bp guidance at asset swaps plus 88bp.
0ACCARû&INANCIALûLASTû3EPTEMBERûALSOû
RAISEDû!MûFROMûITSûDEBUTû-4.ûISSUEûVIAû
the same two banks, a 3.0% four-year note
offering priced at asset swaps plus 85bp.
0ACCARûISûANû!USTRALIANûSPECIALISTûlNANCEû
COMPANYûFOCUSINGûONûTHEûlNANCINGûOFû
trucks and trailers.
CALTEX MARKETS 2026 MTNCALTEX AUSTRALIA ûRATEDû""" û30 ûHASû
mandated MUFG and NAB to arrange
investor meetings in Australia and Hong
Kong commencing June 12 for a potential
!USTRALIANûDOLLARûSEVEN
YEARû-4.ûOFFERING
4HEûOILûANDGASûRElNERûANDûMARKETERû
PREVIOUSLYûISSUEDû!MûOFûûSEVEN
YEARû-4.SûPRICEDûATûBPûOVERûASSETûSWAPSû
in April 2018. In 2011 Caltex sold a A$150m
ûSEVEN
YEARû-4.ûISSUE
FIG
US DOLLARS
SOFR, SO GOOD: MORGAN STANLEY
PITCHES NEW STRUCTURE IN DEBUT
MORGAN STANLEY priced its debut bond
referencing the Secured Overnight
&INANCINGû2ATEûONû7EDNESDAYûWITHûAûNEWû
structure the bank hopes will help set a
PRECEDENTûFORûTHEûmEDGLINGûMARKETûANDû
improve on prior deals.
The US bank priced the US$750m three-
YEARûNONûCALLûTWO
YEARûBONDûATû3/&2ûPLUSû
83bp.
-ORGANû3TANLEYûISûTHEûlFTHû53ûBANKûTOûUSEû
the new reference rate, which will replace
,IBORûINûû7ELLSû&ARGO û*0û-ORGAN û#ITIû
AND ûMOSTûRECENTLY û'OLDMANû3ACHSûHAVEûALLû
REFERENCEDû3/&2ûINûBONDûTRANSACTIONSûSINCEû
it was introduced last year.
4HEûSTRUCTUREûOFûTHEûNEWû-ORGANû3TANLEYû
note differs from its predecessors in how
and when it calculates interest payments.
,IKEû'OLDMAN û-ORGANû3TANLEYûUSEDûAû
compounding interest rate, which the
&EDERALû2ESERVESû!LTERNATIVEû2EFERENCEû
2ATESû#OMMITTEEû!22# ûCONSIDERSûMOREû
accurate than simple average interest rates
used on Libor-referenced notes.
This is a change ARRC has been pushing
ANDû'OLDMANû3ACHSûWASûTHEûlRSTûTOûMAKEû
THEûLEAPûINû-AYûWITHûITSû53BNûTWO
YEARû
NONûCALLûONE
YEARûmOATERûTHATûPRICEDûATû3/&2û
plus 60bp.
9ET ûWHILEûISSUERSûAREûLARGELYûSATISlEDûWITHû
THEûNEWû3/&2ûRATE ûTHEYûSTILLûFACEûDIFlCULTIESû
calculating quarterly interest payments on a
rate that changes daily.
Banks have been exploring different
solutions to this problem.
Earlier issuers opted to use a two-day
lockout or suspension period each quarter
for the days leading up to the due day.
'OLDMANûAMENDEDûTHISûAPPROACHûBYû
calculating each day’s interest payments
USINGûTHEû3/&2ûRATEûFROMûTWOûDAYSûPRIOR û
such that there never had to be a suspension
period.
!NDûONû7EDNESDAY û-ORGANû3TANLEYû
offered a new option.
It will pay interest two days after the end
of the 90-day period, except for the very last
interest payment, which will use a two-day
LOOK
BACKûTHATûASSUMESûTHEû3/&2ûRATEûSTAYSû
the same for those two days, according to an
3%#ûlLING
!ûSOURCEûCLOSEûTOûTHEûTRADEûSAIDû-ORGANû
Stanley’s structure is closest to how the
derivatives market is structured, which
should allow investors to more easily swap
THEûNOTESûBETWEENûlXEDûANDûmOATING
“This is about what is the right way to do
this, not what is the easiest, and trying to
develop a standard that can be used by other
ISSUERSûIFûTHEYûTRYûTOûTAPûTHEû3/&2ûMARKET vû
the source said.%VENûSO û-ORGANû3TANLEYûONLYûDREWû
US$1.1bn in demand for the US$750m trade,
which was similar to the low demand Citi
received earlier this year on its US$1bn
debut that garnered a US$1.3bn order book.
)NûCONTRAST û'OLDMANû3ACHSûUPSIZEDûITSû
debut deal as order books swelled to
US$2.25bn.
h)ûlNDûTHEûSTRUCTUREûAûBITûWEIRD vûSAIDûONEû
BANKERûABOUTûTHEû-ORGANû3TANLEYûTRADE
h0AYMENTûCOULDûBEûPROBLEMATICûFORûSELECTû
investors, but it is better than the
suspension period [incorporated by banks
SUCHûASû*0û-ORGAN û#ITIûANDû7ELLSû&ARGO=ûASûITû
incorporates all rates in the period.”SANTANDER HOLDINGS CUTS THROUGH
VOLATILITY TO PRICE US$1bn BONDSANTANDER HOLDINGS priced a US$1bn bond
Tuesday amid some uneasiness over the
Spanish bank’s US operations and a volatile
capital market still whirling from the
uncertainty about new tariffs.
4HEûBANKûTIGHTENEDûAûlXED
RATEDûlVE
YEARû
bond 12bp through price progression to
come at Treasuries plus 163bp on some
53BNûOFûDEMANDûAFTERûDROPPINGûAûmOATING
rate tranche.
4HEûlNALûSPREADûCAMEûATûAûBPû
concession after accounting for the shorter
MATURITYûONûTHEûEXISTINGûûS ûWHICHû
WEREûTRADINGûATûAû'
SPREADûOFûBP û
ACCORDINGûTOû)&2ûCALCULATIONS
7HILEûTHATûPREMIUMûMAYûSEEMûHIGH ûITû
was favourable against Santander’s last
dollar issue during the depths of the sell-off
in late 2018.
Santander Holdings last accessed the US
bond market in November 2018 with a
û53BNûTHREE
YEARûBONDûTHATûPRICEDûATû
BPûOVERû4REASURIES ûACCORDINGûTOû)&2ûDATA
The bank’s credit spreads were largely
moving wider on Tuesday despite a rally in
the broader market amid optimism over
possible rate cuts in the US.BONDS FIGALL FINANCIAL INSTITUTION BONDS IN EUROS
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 43 11,067.94 9.6
2 SG 27 8,639.48 7.5
3 Credit Agricole 34 8,048.33 7.0
4 Deutsche Bank 33 7,624.61 6.6
5 HSBC 45 7,591.08 6.6
6 JP Morgan 30 7,136.92 6.2
7 Goldman Sachs 30 5,792.95 5.0
8 Natixis 21 5,304.18 4.6
9 Barclays 25 4,523.36 3.9
10 Citigroup 24 4,493.69 3.9
Total 182 115,676.18
Including banks, insurance companies and finance companies. Excluding
equity-related and covered bonds. Excluding publicly owned institutions.
Source: Refinitiv SDC code: N11ALL SUBORDINATED FINANCIAL INSTITUTION
BONDS (ALL CURRENCIES)
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Credit Agricole 10 4,224.53 11.5
2 Barclays 10 3,807.57 10.4
3 HSBC 17 2,380.85 6.5
4 Citigroup 18 2,375.91 6.5
5 Deutsche Bank 12 2,092.14 5.7
6 JP Morgan 12 1,562.07 4.3
7 Morgan Stanley 10 1,474.03 4.0
8 BNP Paribas 12 1,448.71 4.0
9 Goldman Sachs 10 1,403.55 3.8
10 BAML 10 1,354.94 3.7
Total 58 36,644.70Source: Refinitiv SDC code: J3a