(Bloomberg) -- Bank of America Corp. drew strong demand for a three-part offering in Europe's debt market as it joined the ranks of U.S. lenders raising financing across the Atlantic.
Investors tabled more than 7 billion euros ($7.6 billion) equivalent of bids for the Charlotte, North Carolina-headquartered lender's 4.2 billion euros three-part debt sale in euros and sterling, according to a person familiar with the matter, who asked not to be named as they aren't authorized to speak publicly. It's the region's biggest deal from a U.S. bank this year and comes two days after Bank of America reported better-than-expected quarterly earnings.
The sale comes hot on the heels of a 500 million-pound ($650 million) offering from Wells Fargo & Co. on Tuesday, which snapped a month-long absence of U.S. lenders in Europe's debt market amid volatility following Russia's invasion of Ukraine and seasonal earnings blackouts. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are the only other U.S. lenders to raise funds in Europe's publicly syndicated debt market this year, according to data compiled by Bloomberg.
Bank of America offered investors two 1.75 billion-euro tranches due in 4.5 and 11 years and a 600-million pound note maturing in nine years. It priced the longer of the euro notes at 125 basis points above midswaps and about 20 basis points inside an initially-marketed target. The sterling notes were priced at 175 basis-points above U.K. gilts and also about 20 basis points inside initial talk.
Bank of America raised $2 billion in the U.S. bond market on Tuesday from a sale of perpetual non-call five-year notes yielding 6.125%, a day after it announced first-quarter trading revenue that topped average estimates. Its best results were in the equities business, where revenue soared 9.5% to a record $2 billion, the company said, as Wall Street lenders more broadly capitalize on market volatility to boost earnings.
BofA was sole bookrunner on Wednesday's sale, which was its first in the region since September, Bloomberg data show.
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
