CRH Joins Korea Gas Selling Euro Bonds as Borrowing Costs Fall
The building materials maker issued 750 million euros ($1 billion) of notes through its Finnish unit, CRH Finland Services Oyj, according data compiled by Bloomberg. The average yield on investment-grade bonds in euros fell 3.5 basis points to a one-week low of 2 percent, according to Bloomberg bond index data.
Investor demand for corporate debt is being boosted by speculation that global borrowing costs will hold near record lows, with the U.S. government shutdown underpinning stimulus measures. The political standoff is costing the American economy about $160 million each working day, according to global market-research firm IHS Inc.
“The Fed is now more likely to continue to pump in money to backstop the economy,” said Craig Veysey, head of fixed income at Sanlam Private Investments Ltd. in London. “That has made companies more willing to issue and investors more confident to invest. That will support issuance and keep yields down.”
CRH Finland’s seven-year notes yield 107 basis points more than the mid-swap rate, according to Bloomberg data.
Korea Gas sold 500 million euros of bonds due April 2019 yielding 103 basis points more than swaps. It was the Gyeonggi-based company’s biggest sale of notes in the currency, Bloomberg data show.
Another energy supplier in the market today was Gas Natural SDG SA. (GAS) The Barcelona-based company issued 500 million euros of 7 1/2-year notes through its Gas Natural Fenosa Finance BV unit at a spread of 175 basis points.
RWE AG (RWE) sold 500 million euros of 10-year notes yielding 93 basis points more than swaps. Germany’s second-biggest utility issued the bonds through its RWE Finance BV unit.
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