Cartons of Philip Morris Marlboro brand cigarettes.

Philip Morris International Inc. priced a $3.5 billion bond sale yesterday, its second investment-grade offering of 2025.

The 10-year tranche, the longest in the five-part deal, yields 0.78 percentage point over Treasuries, tighter than initial price talk of about 1.05 percentage point, according to a person familiar with the matter who requested anonymity because the details are private. Proceeds will go toward purposes including debt repayment, the person said.

The tobacco company raised $2.5 billion from a four-part offering six months ago, and it tapped European investors through a €1 billion (US$1.16 billion) transaction in June.

There were 11 firms selling a total of $24.3 billion of U.S. high-grade bonds yesterday, including a seven-part transaction to help Amphenol Corp. fund an acquisition, ahead of this week’s Federal Reserve meeting.

BBVA SA, Bank of America Corp., Citigroup Inc., Deutsche Bank AG, and Wells Fargo & Co. are managing this week’s bond sale for Philip Morris, the person said.

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