PNC Financial Services Group Inc. and U.S. Bancorp raised a combined $7 billion in separate bond offerings Wednesday ahead of stricter capital requirements expected from U.S. regulators.
Now eyeing a potential 20% boost to capital requirements, banks are coming back to the investment-grade bond market for the first time since the collapse of Silicon Valley Bank roiled the sector in March. PNC priced $3.5 billion in debt in two parts, according to Bloomberg. It priced $1 billion of notes due in 2026 with a coupon payment of 5.812%, and a $2.5 billion bond due in 2029 with a coupon of 5.582%. Citigroup, Morgan Stanley and PNC are bookrunners on the deal.
Truist issued $1.75 billion in medium-term 5.867% fixed-to-floating rate senior notes due in 2034, as well as $1.5 billion in medium-term 6.047% fixed-to-floating rate senior notes due in 2027. Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P., Morgan Securities LLC, Morgan Stanley & Co. LLC and Capital One Securities Inc. were joint book-running managers.