ABN Amro Bank on Wednesday issued $150 million of 100-year subordinated deposit notes, becoming the first bank to raise debt of such long maturity.
The noncallable issue by the Dutch bank was priced to yield 7.184%, or 110 basis points over the 30-year Treasury bond.
The issue was rated Aa2 by Moody's Investors Service and A-plus by Standard & Poor's Corp.
Only Walt Disney Co. and Coca-Cola have tapped the bond market with century bonds this year, and the previous issue came in 1954, according to Moody's.
As interest rates on the 30-year Treasury bond have stayed substantially below 6% since last Friday, corporate borrowers have been attracted to long-term issues. Besides ABN's issue, Loews Corp. on Wednesday raised $400 million of 30-year debt, and Boeing Co. Tuesday raised $125 million in a care 50-year issue.
Separately, Toronto-Dominion Bank on Wednesday issued $100 million subordinated notes.
The 15-year notes were priced to yield 6.142%, or 88 basis points over comparable U.S. Treasuries.
Morgan Stanley & Co. was lead manager of the Toronto-Dominion and ABN Amro deals.
