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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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Merck & Co, the US pharmaceutical company, launched its first bond in euros for seven years on Monday, just days after its €1.5bn deal from 2007 had matured. With markets recovering after a queasy time last week, the €2.5bn issue was widely seen as a success by rival bankers.
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Strong domestic support allowed unrated Austrian metals group Voestalpine to increase its seven year euro market return to €400m on Wednesday, despite substantial price tightening.
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High grade borrowers were thin on the ground in the US market this week as volatility roiled equities and earnings blackouts loomed large.
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Power Construction Corp of China (PowerChina) is meeting investors on October 10 over the possibilities of a US dollar perpetual bond in what could be its second offshore issuance this year.
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ABC HK tapping market with $300m bond — Greenland returns with 2017s — Bohai Steel offers three year dim sum — Energy Earth digs up Thailand’s first dim sum
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State owned Spanish high speed rail operator Adif Alta Velocidad is seeking a new syndicated loan to replace bilateral loans agreed during the euro crisis. The company is also planning to issue a bond before the end of the year.