Goldman Sachs to Raise Over $5 Billion via Investment-Grade Bond Offering

Deep News01:10

According to sources with direct knowledge of the matter, Goldman Sachs Group Inc. is seeking to raise at least $5 billion through the issuance of investment-grade bonds.

The offering will test investor demand, coming after an unexpected decline in the investment bank's bond trading revenue overshadowed better-than-expected first-quarter results, leading to a drop in its stock price.

Another source indicated that the three-tranche bond offering will have maturities ranging from 4 to 8 years. The preliminary price talk for the longest-dated bonds is approximately 1.25 percentage points above U.S. Treasury yields. The sources requested anonymity as the discussions are private.

According to a statement released on Monday, Goldman Sachs reported first-quarter revenue of $4.01 billion from its Fixed Income, Currency, and Commodities (FICC) trading division. This figure was more than $800 million below the consensus analyst estimate compiled by Bloomberg and represented a 10% decrease compared to the same period last year.

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