Sumitomo Mitsui Financial Group Inc. (8316) and Rabobank Groep led the busiest day in a year for sales of U.S. dollar-denominated bonds by overseas banks, even as investment-grade offerings slump to their slowest annual start since 2008.
Sumitomo Mitsui, Japan’s second-biggest bank, raised $3 billion and Dutch lender Rabobank issued $1.75 billion to push non-U.S. bank offerings yesterday to $7.3 billion, according to data compiled by Bloomberg. The issues, known as Yankee-bank bonds, are the most since $8.8 billion on Jan. 8, 2013.
Bank deals will help to offset a projected 16 percent drop in U.S. high-grade offerings this year, with industrial issuers holding back amid rising interest rates as the Federal Reserve curbs unprecedented stimulus, Bank of America Corp. analysts led by Hans Mikkelsen wrote in a Nov. 25 report.
Yankee-bank bond sales exceeded the $5.4 billion issued this year through Jan. 6 by high-grade companies, Bloomberg data show. Investment-grade sales are off to the slowest start since 2008 and compare with $12.1 billion in the similar period of 2013.
Rabobank, the Utrecht, Netherlands-based co-operative formed in 1898 to lend to Dutch farmers, issued 2.25 percent, five-year notes at a relative yield of 70 basis points, Bloomberg data show.
Sumitomo Mitsui offered $1.5 billion of three-year bonds, split evenly between 1.3 percent, fixed-rate notes and floating-rate securities that yield 43 basis points more than the three-month London interbank offered rate, Bloomberg data show.
The Tokyo-based lender also issued $1 billion of 2.45 percent, five-year bonds paying 80 basis points more than similar-maturity Treasuries and $500 million of 3.95 percent, 10-year debt at a 105 basis-point spread, Bloomberg data show.
Mitsubishi UFJ Financial Group Inc. is Japan’s largest bank.
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