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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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It has been a week of firsts in the corporate bond market, with Italian energy and water group Acea issuing its first bond of the year and Australian-listed property company Scentre picking Europe for its debut issuance.
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ONGC Videsh kept investors guessing with its latest bond deal, launching in dollars but adding a last minute euro ticket – its debut in the currency. The $2.2bn through the triple tranche dual currency bond ranks as the largest G3 offering by an Indian name, with the euro tranche driving tighter pricing on the dollar legs.
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IL&FS Transportation Networks (ITNL) will be meeting investors for what could be the first offshore renminbi bond from an Indian borrower in nearly a year.
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ONGC Videsh has opened guidance on a dual tranche dollar offering just days before newly elected prime minister Narendra Modi reveals his maiden budget on Thursday, July 10. Despite market expectations of a euro-denominated bond, the issuer opted for dollars as the conditions were more favourable.
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China National Gold Corporation is meeting investors next week to discuss its proposed dollar bond. The borrower has issued a number of renminbi bonds in the domestic market but this will be its first international offering.
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China Huarong Asset Management Corporation (AMC), one of China’s four big AMCs, is meeting investors next week for what would be its inaugural international bond.