(Corrects issuing company in first paragraph of story
published Jan. 23.)
Toyota Motor Credit Corp. is raising
1.75 billion euros ($2.3 billion) with its first bond sale in
the currency since 2009.
The Toyota Motor Corp. (7203) unit is offering securities due
August 2017 and February 2023, according to a person with
knowledge of the sale. Yields on auto debt dropped 21 basis
points since the start of December to 68 basis points more than
the swaps rate, according to Bank of America Merrill Lynch’s
Euro Auto Group index. They touched an 18-month low of 67 on
Toyota’s auto sales slumped 21 percent in Europe last
month, compared with a 16 percent drop for global carmakers in
the region. That hasn’t curbed demand for carmaker debt, with
relative yields on Bayerische Motoren Werke AG’s 2016 bonds
tightening seven basis points to 31 basis points since pricing
on Jan. 13, Bloomberg generic prices show.
“While the auto industry is so-so at the moment, with hope
for improvements in the second-half of 2013 Toyota is a stable
name,” said Elmar Zurek, a fund manager at DWS Investment in
Toyota Motor Credit last issued bonds in the currency in
February 2009, when it sold 1.25 billion euros of seven-year
securities, according to data compiled by Bloomberg. The company
is marketing 1 billion euros of 4 1/2-year bonds with a spread
of 40 basis points more than swaps and 750 million euros of 10-
year securities at 70 basis points.
Jaguar Land Rover
Jaguar Land Rover Plc is also tapping credit markets today,
offering its first dollar-denominated bond since May 2011,
according to data compiled by Bloomberg. The Warwickshire, U.K.-
based company plans to sell $400 million of 10-year bonds
callable after five years.
Among other companies issuing debt today, Eurofin
Scientific is marketing as much as 150 million euros of
subordinated perpetual bonds at 7 percent to 7.25 percent. It’s
the Luxembourg-based company’s first sale since June 2010, data
compiled by Bloomberg show.
UniCredit Bank Austria AG will sell five-year senior
unsecured notes at 163 basis points more than swaps.
In derivatives markets, the Markit iTraxx Europe Index of
credit-default swaps rose 0.7 basis points to 105 at 12:27 p.m.
in London. The Markit iTraxx Crossover Index of credit-default
swaps on 50 companies with mostly high-yield ratings rose one
basis point to 424.
The Markit iTraxx Financial Index of contracts on the
senior debt of banks and insurers increased two basis points to
A basis point on a credit-default swap contract protecting
10 million euros of debt from default for five years is
equivalent to 1,000 euros a year. Swaps pay the buyer face value
in exchange for the underlying securities or the cash equivalent
should a borrower fail to adhere to its debt agreements.
For Related News and Information:
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Hannah Benjamin in London at
To contact the editor responsible for this story:
Paul Armstrong at