Yankee issuers dominated the US high-grade market on Tuesday, with names like Sinopec, Suncorp-Metway and Scentre Group Trust benefiting from a lighter calendar in April and an investor base eager to put money to work.
A total of US$8.25 billion was raised by five borrowers, more than half of which came from China’s petroleum giant Sinopec, which raised US$2.5 billion of five, US$1.5 billion of 10 and US$800 million of 30-year bonds, at 125 basis points (bp), 145 bp and 152 bp respectively.
Suncorp-Metway, Australia’s fifth largest commercial bank, tapped the market for US$600 million of five-year notes at T+103 bp, 12 bp tighter than initial price thoughts.
Scentre Group, Westfield Group’s REIT holding Australian and New Zealand properties, raised US$1 billion of six and 10.5-year notes at 110 bp and 137.5 bp respectively.
"The market feels constructive," said one syndicate manager. "Investors seem to have a lot of cash - some of these order books look pretty healthy."
Blue Cross Blue Shield, attracted US$1.2 billion of demand for just US$250 millio of 10-year notes, launched at 187.5 bp versus IPTs in the low 200s.
