30th June 2025

A pair of European issuers are lining up new deals in the corporate new issue space Monday giving us a quick get away from the blocks and also ensuring that the monthly tally will receive some last minute impetus. Vodafone are likely to provide more weight on that front with a 4-parter incorporating new 4yr, 8yr and 13yr EUR and a longer 25yr GBP line while French toll road operator Abertis is touting a new 5yr transaction with the EUR500m deal size capped from the outset.

That builds upon a fairly robust week just gone that saw 11 corporate names, including a HY-looking EUR1bn 5.5NC2 line from Czechoslovak Group (BBB- rating from Fitch), combining to bring 15 tranches worth EUR11.15bn. That meant that we once again beat the average estimate (of EUR9bn) put forward in IGM's weekly issuance survey. The flurry put the monthly haul for the sector at EUR42.85bn, which marked the second biggest Jun ever for euro IG/split-rated corporate supply. Today's deals won't be enough to round off the month with a record as that stands at EUR60.91bn from June 2020.

Live Deals

Vodafone back with 4-parter, including a long GBP tranche

Vodafone, guaranteed by Vodafone Group PLC (rated Baa2 / BBB / BBB (Stable / Stable / Positive Outlook) by Moody's / S&P / Fitch), mandated BNPP, BofA (B&D), DB, Santan (EUR notes) and BofA (B&D), NatWest, RBCCM (GBP notes) as Joint Bookrunners for a benchmark EUR 3-part with tenors of 4yr (3 July 2029), 8yr (3 July 2033) & 13yr (3 July 2038) issued by International Financing DAC (Ticker: VOD / Country: IE) and a benchmark GBP 25yr (3 July 2050) issued by Vodafone Group plc (Ticker: VOD / Country: GB)) Senior, Unsecured, Reg S Bearer (no communications with or into the U.S.), New Global Note, TEFRA D issue, expected ratings Baa2 / BBB / BBB (Moody's / S&P / Fitch). Pay date 3 July 2025 (T+3). Optional Redemption: 2m/3m/3m/6m par calls. MWC. Clean-Up Call: Yes (75% Threshold) No. CoC @ 101. ISINs: XS3109654726/XS3109655020/XS3109655293/XS3109655962.

IPTs: EUR 4yr Bmk @ m/s+95-100, EUR 8yr Bmk @ m/s+130a, EUR 13yr Bmk @ m/s+155-160, GBP 25yr Bmk @ Mid-Gilts +140a

• The new issuance is being conducted alongside a tender offer, for up to EUR2bn equivalent, of long dated GBP and USD lines. Full details can be found as part of our IIIA service here
• Vodafone was last active in EUR in July 2024 with a EUR600m 9yr senior unsecured tranche that met with final demand of EUR1.75bn (2.5bn peak). Prior to that the issuer brought a dual-hybrid / dual-currency deal in May 2023 and we have to look back to Nov 2022 for prior deals in a non-hybrid format. On that occasion it raised a EUR650m long 6yr, EUR650m 12yr and GBP600m 30yr and so again employed a similar pattern to today's proposed activity.
• In terms of pricing for today's prospective lines we see each of the EUR IPTs to be 35-40bp wider than our calculated fair values - 4yr FV @ +55a, 8yr FV @ +95a, 13yr FV +125a
• On the sterling line the issue is a little more subjective, with fewer bonds on the curve and the deal at the longer end, but we are erring towards the 105-110 area for fair value.

Abertis caps new 5yr at EUR500m from the outset

Abertis Infraestructuras SA, rated BBB- stable / BBB stable (S&P/Fitch), has mandated Banco Sabadell, BBVA, BNP Paribas, CaixaBank, Crédit Agricole CIB (B&D), Deutsche Bank, IMI-Intesa Sanpaolo, MUFG, Natixis, RBC Capital Markets, Santander, SMBC, Société Générale and UniCredit as Joint Bookrunners for a EUR500m expected 7 July 2030 (5-year) Senior Unsecured / Reg S / Bearer / New Global Note (NGN) (TEFRA D rules apply, no communications with or into the US), Exp. Issue Ratings BBB- / BBB (S&P/Fitch). Pay date 7 July.

IPTs: m/s+125 bps area

• Since placing a EUR500m senior unsecured note in June 2023 the issuer has concentrated on hybrid issuance with a EUR750m PNC5.25 hybrid in Nov 2024 and a EUR500m PNC5.75 hybrid structure just a few weeks ago on 14th May 2025.
• That deal was 3.8x covered with book attrition kept to a minimum (EUR1.9bn from a peak of 2bn) as just 43.75bp was sliced from the IPT (it took 50bp from IPTs on the Nov 2024 outing and that compares to the -53.125bp spread compression seen across all corporate hybrid deals in 2025 so far).
• With the Abertis senior curve encompassing both a Jan 2028 and Aug 2029 lines at +65a and +80a spreads respectively, a simple extrapolation would suggest a fair value in the +90a.

In the pipeline:

** Servicios Financieros Carrefour (BBB-), the consumer credit business of Carrefour in Spain offering financing solutions to Carrefour customers, has mandated BNP Paribas, Santander and Societe Generale as Global Coordinators, along with BBVA and Credit Agricole CIB as Active Bookrunners, to arrange a series of fixed income investor calls 23-24 Jun. A debut rated EUR500m no grow 4yr senior unsecured bond offering is expected to follow. The net proceeds of the notes, expected to be rated BBB- by S&P, will be used for general corporate purposes, including to refinance part of an existing loan granted by BNP Paribas.

** Bright Food (Group) Co., Ltd, rated Baa2 (Negative) by Moody’s / BBB (Stable) by S&P / BBB+ (Stable) by Fitch, has mandated Bank of China Singapore Branch, BNP PARIBAS Singapore Branch, China CITIC Bank International, ICBC Singapore1, J.P. Morgan, Natixis, Rabobank, and Standard Chartered Bank (Singapore) Limited as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners, together with BOC International and ICBC International as Joint Bookrunners to arrange a series of fixed income investor meetings commencing on 17 June 2025. A EUR-denominated Regulation S senior unsecured sustainable notes (the “Notes”) offering of 5-year maturity may follow subject to market conditions. The Notes will be issued by Bright Food Singapore Holdings Pte. Ltd. (the “Issuer”), and will be unconditionally and irrevocably guaranteed by Bright Food International Limited (the “Guarantor”), and will have the benefit of a keepwell and liquidity support deed and a deed of equity interest purchase undertaking provided by the Company. The Guarantor is rated Baa3 (Negative) by Moody’s / BBB- (Stable) by S&P / BBB (Stable) by Fitch. The Issuer is a direct wholly-owned subsidiary of the Guarantor, and the Guarantor is a direct wholly-owned subsidiary of the Company. The Notes are expected to be rated Baa3 by Moody’s / BBB- by S&P / BBB by Fitch.