Chevron to issue $5.5bn in bonds with varying maturities and coupons.

Chevron plans to issue $5.5bn in bonds in seven tranches with maturities ranging from 2028 to 2035 and coupons between 3.95% to 4.895% per annum. The lead managers for the transaction are Barclays, BofA, Citigroup, J.P. Morgan, Morgan Stanley, HSBC, and MUFG. The funds will be used for unspecified purposes. The bond issue is expected to be launched tomorrow.

Chevron Corp. (NYSE: CVX) is set to issue $5.5 billion in bonds in seven tranches, with maturities ranging from 2028 to 2035 and coupons between 3.95% to 4.895% per annum. The lead managers for the transaction are Barclays, BofA, Citigroup, J.P. Morgan, Morgan Stanley, HSBC, and MUFG. The funds will be used for unspecified purposes, and the bond issue is expected to be launched on July 3, 2025 [3].

This latest bond issuance comes amidst a surge in investment-grade bond sales, with companies such as CVS Health Corp. (NYSE: CVS) also participating in the market. According to Bloomberg, the issuance volume has been the highest in three months, with yields hitting their lowest levels this year and premiums narrowing to near quarter-century lows [1]. The market conditions have been favorable, with corporate bond issuance activity rising sharply in recent weeks.

Investors are closely watching the upcoming consumer-price report on Tuesday, which Bloomberg Economics predicts will show accelerated inflation in July. This could influence the Federal Reserve's September policy meeting, potentially leading to the first rate cut of 2025 [1].

Chevron's bond issue is part of a broader trend of companies tapping into the bond market to secure funding. The increased demand for investment-grade bonds indicates a positive outlook for the corporate bond market, with Wall Street projecting high-grade sales of $40 billion to $45 billion this week [1]. Despite the expected slowdown in August, demand is expected to remain strong.

The bond market's resilience is reflected in the performance of companies like Mitsubishi UFJ Financial Group (MUFG), whose stock surged 3.55% on August 7, 2025, driven by resilient Q2 earnings [3]. The company reported a ¥546 billion profit for the quarter ending June 2025, despite a decline in revenue. The improved financial health of companies like MUFG indicates that the bond market is well-positioned to support corporate financing needs.

In conclusion, Chevron's $5.5 billion bond issuance is a significant event in the current financial landscape. The favorable market conditions and robust demand for investment-grade bonds suggest that the corporate bond market is poised for continued growth. As the Federal Reserve's policy meeting approaches, investors will be closely monitoring the economic indicators and their potential impact on interest rates and bond yields.

References:
[1] https://www.indexbox.io/blog/cvs-and-chevron-lead-surge-in-investment-grade-bond-issuance/
[2] https://www.scribd.com/document/886597328/TheWallStreetJournal-04-12-2025-w
[3] https://www.ainvest.com/news/mitsubishi-ufj-mufg-stock-soars-3-55-resilient-earnings-2508/