By Sarka Halas
Telecommunications companies and Azerbaijan's state-owned oil company SOCAR, emerged in the European primary bond market Wednesday. Top of the primary agenda Wednesday is a two-part bond from U.S.-based AT&T Inc. (T). A solid number of interesting deals may be in the pipeline over the next week or so, with a few companies meeting with investors to gauge interest for riskier subordinated debt, while Russia's Gazprom and Poland's energy group Energa are also meeting with investors. "The continued strength of European credit markets suggests that further issuance could be well received by investors," credit analysts at Mizuho wrote in a note to investors.
In the secondary credit markets, corporate default protection costs were broadly lower, following positive sessions overnight and a more stable tone to the market.
Here's a rundown of how the CDS market is performing, who's selling bonds Wednesday:
iTraxx Europe index: 3 basis point tighter at 109/110 bps
iTraxx Crossover index: 12 bps tighter at 423/425 bps
AT&T Inc. (T), is planning to issue a euro-denominated, benchmark, 10-year, senior, unsecured bond. The company will also be increasing the size of its December 2032 bond by 250 million euros ($325.85 million). Suggested pricing on the 10-year bond is in the range of 85 to 90 basis points over the reference midswaps rate, while suggested pricing on the increase of the 2032 bond is in the area of 135 basis points over the midswaps rate.
Australian telecommunications company Telstra Corp. (TLS.AU) has planned a euro-denominated, benchmark-size, 10.5-year senior unsecured bond. Suggested pricing is in the area of 90 basis points over the reference midswaps rate.
German bank HSH Nordbank has moved ahead with its three-year, 500 million euro ($651.71 million) public sector covered bond. Price suggestions are in the low double-digits over the reference midswaps rate.
The State Oil Company of the Azerbaijan Republic, or SOCAR, has planned a dollar-denominated, 10-year bond. Suggested pricing on the bond is in the area of 4.9%.
Belgium-based AG Insurance has planned a series of investor meetings in Asia and Europe ahead of a potential dollar-denominated, subordinated bond.
Russian oil and gas company OAO Gazprom (GAZP.RS) has planned a series of investor meetings ahead of a potential euro-denominated bond The meetings will be held in Europe on March 11/12, and will be organized by Credit Agricole CIB, Gazprombank and J.P.Morgan.
Norwegian insurer Storebrand Livsforsikring AS (STB.OS) has planned a series of European investor meetings ahead of a potential euro-denominated, subordinated bond.
Polish energy group Energa SA will meet investors starting Monday in anticipation of a potential euro-denominated bond.
German construction services company Hochtief AG (HOT.XE) has planned a series of European investor meetings ahead of a potential euro-denominated bond.
Write to Sarka Halas at email@example.com