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AT&T’s 19 year bond found buyers this week, but rate uncertainty and a flatter euro curve have dampened investor demand for duration
August forecast to be a strong month for corporate dollar supply
Stable backdrop, steady rates and strong demand give issuers reasons to move before the post-summer rush, bankers said
◆ Telco takes size in euros and duration in sterling ◆ Elevated premiums paid at the long end ◆ Sterling tranche AT&T's first since 2018
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Swedish cable operator Com Hem priced its Skr2.5bn (€272m) bond tightly on Thursday. It will use the proceeds to refinance Skr3.5bn of senior secured notes.
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US pharmacy chain Walgreens is set to launch a three day roadshow on Wednesday October 29 for a potential debut bond in euros, sterling, or both.
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Korean hotel and rental service provider Hanjin International Corp is out with guidance for a three year floating rate note guaranteed by the Export-Import Bank of Korea (Kexim).
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Arkema’s roadshow for its possible €600m-€700m perpetual non-call six year hybrid bond issue finished today in Germany, following investor meetings in Paris and London which the leads say were well attended.
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Korea Hydro & Nuclear Power (KHNP)’s new five year fixed rate note was six times over-subscribed on Tuesday. The Aa3/A+/AA- rated borrower offered investors something of a safe haven play amid the recent market volatility and strong demand drove pricing flat to the issuer’s existing curve.
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So far this year, European investment grade bonds have ridden out any patches of volatility relatively unscathed, but last week’s turbulence in US Treasuries, equities and high yield bonds could have an impact on corporate issuance, especially of hybrid capital.