It’s been a disjointed week for the European corporate bond market this week with us alternating between blank days and minimal supply, with Thursday seeing the latter.

Spanish retailer El Corte Ingles S.A is going it alone and marketing a new 8yr benchmark following a two-day roadshow, in what is just its second ever IG-rated euro line.

El Corte Ingles has gone live amid what is an upbeat broader market tone this morning following a wobble late Wednesday on rumours that Trump was considering removing Federal Reserve Chair Powell, something that was subsequently described as "highly unlikely" by the US President.

The day’s solo EUR IG/split-rated corp deal will put the weekly supply for the asset class at just EUR1.725bn, after deals on Tuesday from TERNA (EUR750m 6yr EuGB) and Levi Strauss (EUR475m 5NC2 secured).

That with the latter being included on account of carrying an IG-rating of BBB- from Fitch, although the format, marketing schedule and landing yield of 4% strongly portrays a deal from the high-yield sector.

Even including the Levi Strauss deal, we look set to fall short of supply expectations this week with the average euro corporate supply forecast having come in at a lowly EUR2.5bn, given Monday’s French holiday, earnings blackouts, key US data and ongoing tariff uncertainty.

El Corte Ingles creates IG curve

** Spanish retailer El Corte Ingles S.A (BBB-/BBB-) hired Barclays, BBVA, BofA Securities, CaixaBank, Citi, Goldman Sachs Bank Europe SE and JP Morgan as Active Bookrunners to arrange a series of fixed income investor calls 15-16 Jul. A EUR500m no grow 8yr senior unsecured bond offering has now emerged. Other Bookrunners are Banco Sabadell, BNP Paribas, CA CIB, Deutsche Bank, IMI, Kutxabank, Santander, Societe Generale and Unicaja

IPTs: Books open for EUR500m no grow Jul 2033s at m/s +155 area

• The notes are expected to be rated BBB-/BBB- by S&P/Fitch
• Use of proceeds is for general corporate purposes, including refinancing of existing indebtedness
• El Corte Ingles has just one single currency line outstanding in the form of a EUR500m 4.25% Jun 2031, which was the borrower’s first deal to carry an IG rating. That deal, launched in Jun last year, attracted books of EUR3.2bn (EUR3.6bn peak) and landed at m/s +155 from a +190-200 starting point
• That trade was highlighted on the updated official comps list sent by leads yesterday at i +98 bid
• Equating for the additional curve from the borrower’s only euro deal, we saw fair value for the new 8yr in the m/s +120 region, which bankers running the trade agreed with

€€€ Updated Comps €€€

(Bid side vs I-Sprd)

Ticker Rating Outlooks Size Coupon Maturity Tenor Spread Notes

CRTING --/BBB-/BBB- --/Pos/Pos €500m 4.250% Jun-2031 5.9yr ms+98

REWEEG --/BBB/-- --/Stab/-- €500m 3.500% Jul-2032 7.0yr ms+108

CAFP --/BBB/-- --/Stab/-- €650m 3.750% May-2033 7.9yr ms+140 SLB / No CoC

TSCOLN Baa3/BBB/BBB Pos/Stab/Stab €500m 3.375% May-2032 6.8yr ms+94

WOWAU Baa2/BBB-/-- Stab/Stab/-- €500m 3.750% Oct-2032 7.3yr ms+116

CLNXSM --/BBB-/BBB- --/Stab/Stab €750m 3.500% May-2032 6.9yr ms+101

CLNXSM --/BBB-/BBB- --/Stab/Stab €1.25bn 2.000% Feb-2033 7.6yr ms+107

WERFEN --/BBB-/BBB- --/Stab/Pos €500m 3.625% Feb-2032 6.6yr ms+120

In the pipeline:

** Servicios Financieros Carrefour (BBB-), the consumer credit business of Carrefour in Spain offering financing solutions to Carrefour customers, 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

Performance tracker of recent EUR IG/split-rated benchmark deals