The pace of corporate bond issuance appears to be picking up as the third of the four major banks has announced a large USD transaction. This time it is ANZ and it is in the form a two-tranche deal with one 3 year tranche worth $1 billion priced at US Treasurys + 85bps and a 5 year tranche worth $500 million at US Treasurys + 97bps.
When NAB was the first of the majors to conclude a substantial deal after the British EU referendum, some observers noted the pricing and commented on the higher spread. In May ANZ issued USD-denominated bonds which included a USD$850 million tranche of 5 year bonds which were priced at Treasurys + 95bps and, as with NAB’s recent issue, ANZ will pay more on this latest offering. However in this case it appears ANZ has got a better deal on the 5 year component.