Bloomberg News

Goldman Sachs Raises $2.5 Billion With Sale of Five-Year Bonds

July 16, 2013

Goldman Sachs Group Inc. (GS:US), the Wall Street bank that generates most of its revenue from trading, sold $2.5 billion of five-year bonds after reporting second-quarter profits that beat analysts’ estimates.

The 2.9 percent notes, expected to be rated A3 by Moody’s Investors Service, yield 155 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg.

Goldman Sachs sold $2.75 billion of 2.375 percent debentures due 2018 in January that were priced to yield 165 basis points more than benchmarks, Bloomberg data show. Those securities traded yesterday at 98.8 cents on the dollar to yield 2.66 percent, or a 127.7 basis-point spread, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Goldman Sachs said today that earnings doubled on a surge in underwriting revenue and gains from the firm’s own investments. Second-quarter net income (GS:US) rose to $1.93 billion, or $3.70 a share, from $962 million, or $1.78, a year earlier. That beat the $2.89 average estimate of 27 analysts in a Bloomberg survey.

Proceeds will be used for general corporate purposes, according to a person with knowledge of the transaction who asked not to be identified because terms aren’t set.

To contact the reporter on this story: Sarika Gangar in New York at

To contact the editor responsible for this story: Alan Goldstein at

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