(Bloomberg) --Goldman Sachs Group Inc. raised fresh debt in the U.S. investment-grade bond market, the latest issuer to tap investors after Fitch Ratings cut the country's credit score and ahead of key inflation data later this week.
The bank sold $2.75 billion of bonds in two parts, according to a person familiar with the matter. The $2.25 billion fixed-to-floating rate tranche will yield 1.03 percentage points above Treasuries, after initial price discussions suggested 1.25 points. The bonds are noncallable for two years and mature in three years, said the person, who asked not to be identified as the details are private.
Goldman was among at least nine borrowers to come to market Monday, following the six issuers that sold fresh debt in the days following Fitch's rating action. Also, borrowers might look to get deals done before the latest reading of the consumer price index — due on Thursday — which is leading the market to weigh a potential pause to rate increases in September.
Activity in the primary market kicked off with a number of banks announcing debt deals overnight, including BNP Paribas, which became the first European bank to sell additional tier 1 notes in U.S. dollars since the writedown of Credit Suisse securities. AT1 bonds are a kind of hybrid security that helps banks bolster capital to meet regulations designed to prevent a failure.
Thermo Fisher Scientific and Caterpillar Financial are among the issuers in the market Monday, where a combined $14.5 billion is expected to price. Dealers' estimates for the week call for around $30 billion of new issuance.
Representatives for Goldman Sachs, BNP, Caterpillar Financial and Thermo Fisher declined to comment.
--With assistance from Josyana Joshua.
