New York Life Global Funding is considering a Canadian-dollar debt offering as soon as Thursday, according to sources familiar with the matter who requested anonymity because they are not authorized to speak publicly. The deal would likely have a seven-year maturity, with initial pricing discussed in the low-to-mid 80s basis points range above government debt.
This potential offering follows two maple bond sales last week that totaled $1.5 billion. Foreign companies have been taking advantage of favorable credit spreads and currency hedging swap spreads by issuing Canadian-dollar debt, and investors have welcomed the diversification.
In June, New York Life sold a $1 billion bond with a 4% coupon in a transaction that attracted 49 buyers, with orders exceeding twice the size of the bond. The company is now looking to tap the market again, capitalizing on current conditions.
The move underscores the growing popularity of maple bonds, which are Canadian-dollar-denominated debt issued by foreign entities. These instruments offer issuers cost advantages through lower spreads and efficient hedging, while providing Canadian investors with access to high-quality foreign credits.
