Following the release of its financial results, Goldman Sachs Group Inc (GS.US) has initiated a new euro-denominated bond sale. This move comes just one day after its earnings report and on the heels of a recent $10 billion bond issuance in the United States. The bank launched this three-part euro bond offering on Wednesday.
According to sources familiar with the matter, the American banking giant aims to raise a minimum of €1.5 billion, equivalent to approximately $1.7 billion, from this benchmark-sized transaction. The bond offering consists of both floating-rate and fixed-rate tranches, each featuring an initial call option after three years. An additional, longer-dated fixed-rate tranche includes a call option exercisable after seven years.
Goldman Sachs has already executed two of the largest bond sales within the financial sector this year. Data indicates that in February, the bank raised €7 billion through a four-tranche euro offering, marking the largest financial sector issuance in the region for 2026. Earlier in January, it set a record by selling $16 billion in bonds, the largest such issuance ever by a US bank.
The recent three-part US dollar bond sale by Goldman Sachs attracted considerable investor interest, with orders peaking at around $32 billion on Tuesday. This successful debt offering follows a period of exceptional performance in its equities trading division, which reported quarterly revenue of $7.42 billion, surpassing the combined total from all four quarters of 2019. Concurrently, fee income from its investment banking division reached its highest level since 2021.
Sources provided details on the initial pricing guidance for the new euro bonds. The floating-rate notes are being marketed with an initial spread of approximately 100 to 105 basis points over the 3-month Euro Interbank Offered Rate (Euribor). The shorter-dated fixed-rate tranche carries guidance of about 90 to 95 basis points over the mid-swap rate. The guidance for the longest-dated portion is approximately 125 to 130 basis points over the mid-swap rate.
The forthcoming bonds are anticipated to receive credit ratings of A2 from Moody's, BBB+ from Standard & Poor's, and A from Fitch. Goldman Sachs is acting as the sole bookrunner for this transaction.
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