{"id":6223,"date":"2023-10-28T01:55:10","date_gmt":"2023-10-28T01:55:10","guid":{"rendered":"https:\/\/infundpros.com\/investment\/truist-raising-1-75b-in-bond-offering-making-it-the-latest-bank-to-raise-capital\/"},"modified":"2023-10-28T01:55:11","modified_gmt":"2023-10-28T01:55:11","slug":"truist-raising-1-75b-in-bond-offering-making-it-the-latest-bank-to-raise-capital","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=6223","title":{"rendered":"Truist raising $1.75B in bond offering, making it the latest bank to raise capital"},"content":{"rendered":"
\n

Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch.<\/p>\n

Truist Financial
\n TFC,
\n -3.12%<\/bg-quote>
\n is expected to price the notes maturing Oct. 30, 2029, about 225 basis points over the 5-year Treasury
\n BX:TMUBMUSD05Y
\n yield of about 4.9% on Wednesday.<\/p>\n

\n

Initial price talk was around 255 basis points but the spread tightened in a sign of healthy appetite for the debt. The Truist bond offering attracted about $8 billion in orders, in a sign of robust demand, the source said.<\/p>\n

Truist bonds have also been drawing in more investors in the past 10 days than sellers in a reflection of interest in its corporate bonds.<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n
<\/div>\n<\/figure><\/div>\n

Spreads on existing Truist debt have tightened or flattened in the days just before the bond offering in a sign of stability ahead of its debt issuance (see chart below).<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n
\n \"\"\n <\/div>\n<\/figure><\/div>\n

Truist\u2019s stock rose by 0.8% on Wednesday.<\/p>\n

Prior to Wednesday\u2019s offering, Truist issued $6.3 billion of fixed-to-floating rate senior notes with interest rates ranging from 4.78% and 6.05% due from June 8, 2027, to June 8, 2034, during the six months ended June 30, the company said in a filing.<\/p>\n

Truist has typically issued debt three times a year since the company was formed in December 2019, after BB&T and SunTrust Banks closed their merger deal.<\/p>\n

The company has aired plans to issue debt three- to four times a year. Past offerings have ranged from $500 million to $1.75 billion per tranche. <\/p>\n

Banks are in need of raising money both to meet proposed increases in capital requirements by the U.S. Federal Reserve and to build up reserves ahead of an expected economic downturn in 2024.<\/p>\n

Banks often raise debt after their quarterly earnings as well, which have been out in the past couple of weeks. <\/p>\n

The deal from Truist comes after U.S. Bancorp
\n USB,
\n -3.56%<\/bg-quote>
\n issued $1 billion in corporate bonds on Oct. 19. Goldman Sachs Group Inc.
\n GS,
\n -2.38%<\/bg-quote>
\n issued about $4 billion in debt and BNY Mellon Corp.
\n BK,
\n -1.16%<\/bg-quote>
\n issued $2 billion in bonds on Oct. 18, according to data from BofA Global Research.<\/p>\n

PNC Financial Services Group Inc.
\n PNC,
\n -2.73%<\/bg-quote>
\n raised $3.5 billion in corporate debt on Oct. 17, while Wells Fargo & Co.
\n WFC,
\n -2.24%<\/bg-quote>
\n issued $6 billion in corporate bonds and JPMorgan Chase & Co.
\n JPM,
\n -3.60%<\/bg-quote>
\n issued $7.25 billion in debt, both on Oct. 16.<\/p>\n

Robust demand for the Truist bonds comes amid positive sentiment for debt issuance, which has been weak in 2022 and much of 2023. Moody\u2019s Corp. Chief Executive Robert Scott Fauber said debt issuance has been running lower than normal, which suggests a potential uptick down the road. <\/p>\n

\u201cOverall corporate debt velocity, which is total corporate issuance as a percent of total corporate debt outstanding, remains pretty far below historical averages, so that implies the potential for\u00a0pent-up issuance demand in the future,\u201d he said on the company\u2019s third-quarter conference call with analysts.<\/p>\n

In July, Bond issuance after earnings from the U.S.\u2019s six largest banks was expected to be about $30 billion, according to a Bloomberg analysis of JPMorgan data. <\/p>\n

Also Read<\/strong>: JPMorgan, Citi and Wells earnings to unleash borrowing blitz by banks<\/p>\n

Joy Wiltermuth contributed to this report<\/em>.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told…<\/p>\n","protected":false},"author":1,"featured_media":6224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-6223","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investment"},"yoast_head":"\nTruist raising $1.75B in bond offering, making it the latest bank to raise capital | inFundPros<\/title>\n<meta name=\"description\" content=\"Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch. Truist\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=6223\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Truist raising $1.75B in bond offering, making it the latest bank to raise capital | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch. Truist\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=6223\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-28T01:55:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-28T01:55:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1698458111_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=6223#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=6223\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Truist raising $1.75B in bond offering, making it the latest bank to raise capital\",\"datePublished\":\"2023-10-28T01:55:10+00:00\",\"dateModified\":\"2023-10-28T01:55:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=6223\"},\"wordCount\":534,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Investment\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=6223#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=6223\",\"url\":\"https:\/\/infundpros.com\/?p=6223\",\"name\":\"Truist raising $1.75B in bond offering, making it the latest bank to raise capital | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-10-28T01:55:10+00:00\",\"dateModified\":\"2023-10-28T01:55:11+00:00\",\"description\":\"Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch. Truist\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=6223#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=6223\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=6223#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Truist raising $1.75B in bond offering, making it the latest bank to raise capital\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Truist raising $1.75B in bond offering, making it the latest bank to raise capital | inFundPros","description":"Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch. Truist","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=6223","og_locale":"en_US","og_type":"article","og_title":"Truist raising $1.75B in bond offering, making it the latest bank to raise capital | inFundPros","og_description":"Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch. Truist","og_url":"https:\/\/infundpros.com\/?p=6223","og_site_name":"inFundPros","article_published_time":"2023-10-28T01:55:10+00:00","article_modified_time":"2023-10-28T01:55:11+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1698458111_social.jpeg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=6223#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=6223"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Truist raising $1.75B in bond offering, making it the latest bank to raise capital","datePublished":"2023-10-28T01:55:10+00:00","dateModified":"2023-10-28T01:55:11+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=6223"},"wordCount":534,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Investment"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=6223#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=6223","url":"https:\/\/infundpros.com\/?p=6223","name":"Truist raising $1.75B in bond offering, making it the latest bank to raise capital | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-10-28T01:55:10+00:00","dateModified":"2023-10-28T01:55:11+00:00","description":"Truist Financial Corp. is pricing a $1.75 billion bond offering with strong demand on Wednesday, a source in the bond market told MarketWatch. Truist","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=6223#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=6223"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=6223#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Truist raising $1.75B in bond offering, making it the latest bank to raise capital"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/6223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6223"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/6223\/revisions"}],"predecessor-version":[{"id":6225,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/6223\/revisions\/6225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/6224"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}