4HEûREOPENINGûPRICEDûATûûTOûYIELDû
ûBPûOVERûASSETûSWAPSûANDûBPû
wide of the July 2022 ACGB.
Last Friday, KFW added A$100m to its now
A$550m 2.8% March 2023 Kangaroo at
ûFORûAûYIELDûOFû ûBPûANDûBPû
wide of asset swaps and the April 2023
ACGB.
On the same day, INTERNATIONAL FINANCE
CORP increased its 4.25% August 2023s by
!M ûBRINGINGûTHEûTOTALûSIZEûTOû!M
This tap priced at 111.382 to yield 0.85%,
BPûANDûBPûOVERûASSETûSWAPSûANDûTHEû
April 2023 ACGB.
TD Securities was sole lead manager for the
KfW and IFC taps, while Nomura arranged
the ADB increase.
4HESEûTHREEûISSUERSûPREVIOUSLYûRAISEDûAû
combined A$575m from six reopenings
BETWEENû-ARCHûûANDû ûATTRIBUTEDûTOûTHEû
same Asian central bank purchaser and a
blow-out in short-end cross-currency basis
swap rates.
The three-year cross-currency basis swap
soared from a broad 15bp–20bp range
BETWEENû*ANUARYûûANDû-ARCHû ûTOûOVERûû
ANDûEVENûûOVERûTHEûNEXTûFEWûDAYS
4HEûSWAPûLEVELûWASûANûELEVATEDûûONû
March 13 for ADB’s latest tap, but had fallen
BACKûDOWNûTOûûWHENû+F7ûANDû)&#û
returned a week later.CORPORATES
US DOLLARS
ENERGY NAMES PAY PRICE FOR
RUSHING TO VOLATILE BOND MARKET%XXONû-OBILûLEDûAûPACKûOFûENERGYûlRMSûHITTINGû
the bond market last Tuesday, but high
concessions and one pulled deal from frequent
issuer Entergy underscored just how tough it is
for borrowers from the battered sector.
EXXON MOBIL successfully priced a hefty
53BNûlVE
PARTûBONDûONû4UESDAY ûBUTûINû
DOINGûSOûSHOWEDûTHATûEVENûTHEûHIGHESTû
QUALITYûENERGYûNAMESûHAVEûTOûPAYûUPûBIG
%VENûSO ûTIMINGûPROVEDûOPPORTUNEûASû
funding doors quickly shut on Wednesday
INûANOTHERûCORONAVIRUS
DRIVENûROUTûTHATûSAWû
the price of US crude oil plummet to just
OVERû53ûAûBARRELûnûITSûLOWESTûLEVELûSINCEû
February 2002.
Damage to the sector from the economic
IMPACTûOFûTHEûCORONAVIRUSûHASûONLYûBEENû
exacerbated by a price war between oil
producers Saudi Arabia and Russia.
!NDûAVERAGEûHIGH
GRADEûENERGYûSPREADSû
hit 451bp on Tuesday, a fresh four-year wide
for the sector, according to ICE BofA data.While its Aaa/AA ratings made Exxon
Mobil one of the best suited energy names to
tap funding, the oil behemoth still had to
offer the market 45bp of new issue
concession to get the deal done.
Bookrunners Bank of America, Citigroup and
JP Morgan tightened spreads just 10bp before
PRICINGûAû53BNûlVE
YEARûATûBPûOVERû
4REASURIES ûAû53BNûSEVEN
YEARûATûBP ûAû
US$2bn 10-year at 240bp, a US$1.25bn 20-
year at 250bp and a US$2.75bn 30-year at
BP
By comparison, Exxon’s outstanding
ûûWASûQUOTEDûONû4UESDAYûATûAû
'
SPREADûOFûBP ûMAKINGûFORûAûBPû
concession – and it was a similar story across
%XXONSûCURVE
3UCHûRESULTSûHAVEûRAISEDûQUESTIONSûABOUTû
other energy names and battered sectors.
“If you look at Exxon, they are about as
big as it gets,” said Dominic Nolan, senior
MANAGINGûDIRECTORûATû0ACIlCû!SSETû
Management.
“That’s a bellwether energy player, so
when you get into some other smaller
energy names and then airlines, retail,
HOSPITALITYûANDûLEISURE ûTHOSEûNAMESûAREûVERYû
WEAKûANDûITSûHARDûTOûlNDûAûDEEPûBIDvENTERGY STUMBLES
ENTERGY CORP ûFORûONE ûFELLûVICTIMûTOû
deteriorating market sentiment on Tuesday
when it pulled a two-part bond deal
COMPRISINGûlVE
YEARûANDû
YEARûTRANCHESû
being marketed in the area of Treasuries
PLUSûBPûANDûBP ûRESPECTIVELY
Barclays, Citigroup, Goldman Sachs, JP Morgan
and Morgan Stanley NEVERûWENTûBEYONDûINITIALû
price thoughts and by around 3pm New
York time the company announced the
postponement, citing market conditions.
“I don’t think it’s anything to do with the
CREDITûSPECIlCALLY vûONEûLEADûSYNDICATEû
banker close to the deal said.
h)TûGOTûLOSTûINûTHEûSHUFmEûANDûTHEû
household names outperformed in that
ENVIRONMENTv%NTERGY ûRATEDû"AA""" ûCOULDûHAVEûPUSHEDû
the deal forward with a high new issue
concession on the bond but management
opted to pull it instead, the banker said.
The company has come to the bond
MARKETûTHREEûTIMESûTHISûMONTHûVIAûITSû
subsidiaries in Louisiana, Texas and
Arkansas.
!LLûTHOSEûTRADESûPRICEDûWITHûRELATIVELYûLOWû
NEWûISSUEûCONCESSIONSûBUTûSPREADSûHAVEû
since blown out.
4HEû53MûûûENTERGY LOUISIANA
NOTE ûWHICHûPRICEDûONû-ARCHûûATûBPûOVERû
with just a 5bp premium, has since widened
out to a G-spread of 181.2bp.
3IMILARLY ûTHEû53Mûûû
ENTERGY TEXAS bond is now trading at a
G-spread of 231.7bp, after pricing on March
ûATûBPûOVERûWITHûAûBPûCONCESSION
%NTERGYûPROBABLYûWOULDûHAVEûPRICEDû
similarly to DOMINION ENERGY GAS HOLDINGS,
which managed to raise US$750m in a two-
part deal on Tuesday, albeit at a high
premium.
$OMINION ûRATEDû"AA"""""" ûNEVERû
BUDGEDûFROMûINITIALûPRICEûTHOUGHTSûANDûGAVEû
up 55bp of new issue concession on both a
53MûlVE
YEARûANDûAû53MûSEVEN
YEARûTHATûPRICEDûATû4REASURIESûPLUSûBPû
ANDûBP ûRESPECTIVELYInternational Financing Review March 21 2020 29BONDS CORPORATESALL INV-GRADE US CORPORATE BONDS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Excluding equity-related debt, ABS/MBS, all foreign issues, global issues
and non corporates.
Source: Refinitiv SDC code: F6a1 JP Morgan 35 11,008.98 16.2
2 BofA Securities 31 9,922.58 14.6
3 Citigroup 27 9,378.61 13.8
4 Barclays 21 4,793.23 7.0
5 Wells Fargo 22 4,297.73 6.3
6 Morgan Stanley 12 3,335.63 4.9
7 Goldman Sachs 15 2,829.84 4.2
8 RBC 16 2,386.13 3.5
9 SG 6 1,673.83 2.5
10 MUFG 11 1,553.17 2.3
Total 70 68,104.52ALL US INVESTMENT GRADE CORPORATE DEBT
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Source: Refinitiv SDC code: F91 JP Morgan 118 36,131.54 12.4
2 Citigroup 96 29,459.84 10.1
3 BofA Securities 108 29,338.36 10.0
4 Morgan Stanley 67 24,716.39 8.5
5 Goldman Sachs 64 21,415.49 7.3
6 Barclays 53 15,046.65 5.1
7 Wells Fargo 64 14,882.88 5.1
8 RBC 45 9,766.80 3.3
9 MUFG 41 8,095.51 2.8
10 Deutsche Bank 33 8,063.26 2.8
Total 243 292,257.83ALL CORPORATE BONDS IN EUROS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)Excluding equity-related debt. FIGs, ABS/MBS.
Source: Refinitiv SDC code: N81 Barclays 22 6,060.55 7.3
2 JP Morgan 29 5,663.92 6.8
3 BNP Paribas 37 5,545.77 6.7
4 HSBC 26 5,287.95 6.3
5 Deutsche Bank 25 3,914.65 4.7
6 Citigroup 22 3,754.41 4.5
7 SG 23 3,309.33 4.0
8 UniCredit 23 3,089.99 3.7
9 BofA Securities 18 2,857.18 3.4
10 Credit Agricole 19 2,822.69 3.4
Total 106 83,319.586 IFR Bonds 2325 p 23 - 45 .indd 29 20 / 03 / 2020 19 : 59 : 40