11th June, 2025

It’s proving to be a busy session for the European IG corporate bond market on Wednesday with six borrowers offering euros and one sterling, all having held roadshows or calls earlier in the week.

The uptick comes after four issuers launched opportunistic euro trades Tuesday, raising a combined EUR3bn in the process and opening a week which market participants expect to yield EUR9bn of issuance.

The quartet showed that issuance conditions are currently strong with the NICs ranging from -5bps to +2.5bp after leads were able to cut pricing on average 38bps from IPTs on the back of combined demand last communicated at EUR11.1bn (EUR14.55bn peak).

Amongst those out on Tuesday and offering some rarity value were Norsk Hydro ASA (EUR500m no grow 8yr) and Covivio (EUR500m no grow 9yr) which offered just the second and third IG corporate European Green Bond (EuGB) trades ever - the format is the newly created EU standard for green bonds.

Following a pioneering trade from A2A SpA (EUR500m 3.625% Jan 2035; -5bp NIC) in Jan, both of Tuesday’s EuGBs landed at m/s +135 which equated to a zero NIC on Covivio and -5bps on the Norsk Hydro.

Demand for the former finished up at EUR2.1bn (EUR2.4bn) and an even bigger EUR3.4bn (EUR4.3bn peak) on the latter, showing plenty of investor interest is there for the new format.

Elsewhere, vanilla deals came from Veolia Environnement (EUR850m 7yr & EUR650m 12yr two-part; jt-bk 4.2bn from 5.25bn peak & 2.5bp/zero NICs) and Air Products and Chemicals Inc (EUR500m no grow 7yr; 1.4bn book from 2.6bk peak & -2bp NIC).

The latter added to the year’s bumper reverse yankee haul, with more on the way Wednesday from Amphenol Corp (EUR 7yr), Realty Income Corp (EUR 6/10yr two-part) and Oncor (EUR 9yr secured).

They are being joined on the day in the senior market by Urenco (EUR500m no grow 10yr) and Alfa Laval AB (EUR300m no grow 6.25yr), whilst RWE AG (EUR1bn no grow two-part 30NC5.25 and 30NC8 green hybrid) is offering its first subordinated paper in ten-years.

Away from the single currency, ABP Finance plc (GBP300m no grow 12yr secured) is offering a sterling option alongside a tender offer.

Summary of Tuesday's EUR IG corporate trades:

RWE returns to hybrid market after 10yr absence

** German electricity generation company RWE AG (Baa2/BBB+) hired BBVA, Goldman Sachs Bank Europe SE, HSBC, NatWest, Santander and Societe Generale as Joint Active Bookrunners to arrange a series of fixed income investor calls on 10-Jun. A EUR1bn no grow two-part 30NC5.25 and 30NC8 green hybrid transaction has emerged

IPTs (yield):

EUR500m no grow Jun 2055 non-call Sep 2030 green hybrid at 4.75% area

EUR500m no grow Jun 2055 non-call Jun 2033 green hybrid at 5.25% area

• The expected instrument rating is Baa3 by Moody’s and BBB- by Fitch
• Net proceeds of the offering will be used to refinance, in whole or in part, existing and/or future eligible green projects as defined in the Jun 2023 Green Financing Framework
• This marks RWE’s first hybrid offering since way back in 2015, with leads highlighting the lines of sector peers as compatriots

€€€ RWE EUR Bmk 30NC5.25 and 30NC8 Green Hybrid - Comps €€€

Indicative pre-announce levels vs bid side

*** Hybrid Comparables ***

Ticker Hybrid Rating Cpn Reset Date Yrs to Reset I-sprd YTR Amt o/s (mn) Snr-Sub ESG

IBESM Baa3/BBB-/BBB 4.247% Aug-30 5.2y 170 3.963% 800 103 Y

IBESM Baa3/BBB-/BBB 4.871% Jan-33 5.9y 171 4.024% 700 100 Y

ENGIFP Baa3/BBB-/BBB- 4.750% Jun-30 5.0y 172 3.958% 800 90 Y

ENGIFP Baa3/BBB-/BBB- 5.125% Jun-33 8.0y 203 4.486% 1035 104 Y

ENBW Baa3/BBB-/NR 5.250% Jan-30 4.6y 178 3.998% 500 109 Y

ENBW Baa3/BBB-/NR 2.125% May-32 7.2y 213 4.531% 500 121 N

ENELIM Baa3/BB+/BBB- 4.250% Apr-30 4.8y 188 4.113% 1000 110 N

ENELIM Baa3/BB+/BBB- 4.500% Jan-33 7.6y 231 4.739% 1000 131 N

EDPPL Baa3/BB+/BB+ 4.625% Mar-31 5.8y 209 4.395% 1000 121 Y

EDPPL Baa3/BB+/BB+ 4.500% Feb-32 6.7y 222 4.591% 750 125 Y

VIEFP Baa3/BB+/NR 4.371 Aug-30 5.2y 178 4.043% 500 101 Y

*** RWE Secondary Curve ***

Ticker Snr Rating Cpn Mty Date Yrs to Mty I-sprd Amt o/s (m) ESG

RWE Baa2/NR/BBB+ 2.750% May-30 5.0y 64 1000 Y

RWE Baa2/NR/BBB+ 0.625% Jun-31 6.0y 65 500 Y

RWE Baa2/NR/BBB+ 3.625% Jan-32 6.6y 86 500 Y

RWE Baa2/NR/BBB+ 1.000% Nov-33 8.5y 106 600 Y

RWE Baa2/NR/BBB+ 4.125% Feb-35 9.7y 107 500 Y

Amphenol Corp returns to euros after five-year hiatus

** US electronic connector manufacturing company Amphenol Corporation (A3/A-) mandated BNP Paribas, Citigroup and Commerzbank to organize a series of European fixed income investor calls commencing on 10-Jun. A EUR 7yr SEC-registered benchmark has emerged

IPTs: Books open for EUR Jun 2032 benchmark at m/s +125 area

• Expected ratings are A3/A- by Moody’s/S&P
• Proceeds are to be used to repay borrowings under its US commercial paper program and for other general corporate purposes
• This will extend Amphenol’s fledgling euro curve from a EUR500m 2% Oct 2028 line launched in 2018, whilst its only other single currency bond is a EUR500m 0.75% May 2025 from 2020. The former was bid at an indicative i +45 bid on screens when the mandate was first announced Monday, but was at closer to +43 this morning
• The euro deal comes hot on the heels of Monday’s USD750m 3yr offering from the borrower which saw demand of USD1.6bn

Realty Income & Oncor make second euro visits

** US REIT Realty Income Corporation (A3/A-) mandated BNP Paribas, BBVA, Citigroup, RBC Capital Markets, and Wells Fargo Securities to arrange a series of fixed income investor calls commencing 10-Jun. A EUR 6yr and 10yr two-part SEC-registered benchmark has gone live

IPTs:

EUR500m (exp) Jun 2031s at m/s +150 area

EUR500m (exp) Jun 2035s at m/s +180 area

• Expected securities ratings are A3 / A- (Moody’s/S&P)
• Funds from the bonds are being earmarked for general corporate purposes, which may include, among other things, the repayment or repurchase of indebtedness, including borrowings under the revolving credit facilities and commercial paper programs, foreign currency swaps or other hedging instruments, the development, redevelopment and acquisition of additional properties, acquisition or business combination transactions, and the expansion and improvement of certain properties in the portfolio
• Included are the following covenants:
  • Total Debt / Adjusted Total Assets ≤60%
  • Secured Debt / Adjusted Total Assets ≤40%
  • Debt Service Coverage ≥1.5x
  • Unencumbered Assets / Unsecured Debt ≥150%
• This backs up a debut offering of EUR550m 4.875% Jul 2030 and EUR550m 5.125% Jul 2034 euro notes in Jun 2023
• Those bonds which made up the inaugural offering were spotted on screens at i +107 and +136 respectively when the new mandate was announced Tuesday
• Adjusting the curve accordingly, we saw fair value for the 6yr at m/s +110-115 and at +140-145 on the 10yr, which bankers on and off the trade said they broadly agreed with

** US transmission and distribution electric utility Oncor Electric Delivery Company (A2/A+/A) mandated Barclays, BNP Paribas, Credit Agricole CIB and JP Morgan to organize a series of fixed income investor calls 10-Jun. A EUR 9yr secured 144A / Reg S offering is now being worked

IPTs: Books open for EUR Jun 2034 secured benchmark at m/s +155 area

• Expected issue ratings are A2/A+/A by Moody´s/S&P/Fitch
• The notes are being offered via Oncor Electric Delivery Company LLC
• Net proceeds from this offering are intended to be used for general corporate purposes, which may include to repay the full amount outstanding under the AR Facility and outstanding commercial paper notes, when due, issued under the company’s commercial paper program
• Oncor has also issued euro debt just once before having issued a debut EUR500m 3.5% May 2031 green at m/s +80 in May last year on a 3x covered book. That deal was trading at +90 bid on screens this morning

Urenco creating euro curve with 10yr

** British-German-Dutch nuclear fuel consortium Urenco (Baa1/BBB+), a provider of uranium enrichment services and fuel cycle products for power generation, hired Barclays, BNP Paribas, Deutsche Bank and Santander as Joint Bookrunners to arrange a series of fixed income investor calls commencing 9-10 Jun. A EUR500m no grow 10yr senior unsecured bond transaction is now live

IPTs: Books open for EUR500m Jun 2035s at m/s +155-160

• The notes are being issued by the company’s Dutch arm Urenco Finance N.V
• Urenco intends to use the net proceeds for general corporate purposes
• The company has just one euro deal outstanding in the form of EUR500m 3.25% Jun 2032s launched in Jun 2022 at m/s +143 into books of EUR1.65bn (EUR1.85bn peak)
• Those Jun 2032s were spotted by leads at i +99 pre-announcement and highlighted on the official comps list sent Monday along with the curves of other energy sector peers
• Equating for the extra three-years from the Jun 2032s we saw around an additional 20bps, which in turn would put fair value for the new 10yr in the m/s +120 area

Ticker Ratings (M/S/F) Cpn Mat TTM Amt I-Sprd

URENCO Baa1/BBB+/- 3.250 Jun-32 (7.0y) 500 +99

EDF Baa1/BBB/BBB+ 3.250 May-32 (6.9y) 750 +102

EDF Baa1/BBB/BBB+ 4.375 Jun-36 (11.0y) 880 +139

EDF Baa1/BBB+/BBB+ 4.000 May-37 (11.9y) 1000 +140

ENELIM Baa1/BBB+/BBB+ 3.000 Feb-31 (5.7y) 750 +91

ENELIM Baa1/BBB+/BBB+ 3.875 Jan-35 (9.6y) 1000 +123

EOANGR Baa1/BBB+/BBB+ 3.125 Mar-30 (4.7y) 750 +59

EOANGR Baa1/BBB+/BBB+ 3.500 Apr-33 (7.9y) 850 +101

EOANGR Baa1/BBB+/BBB+ 3.875 Sep-38 (13.2y) 500 +124

EOANGR Baa1/BBB+/BBB+ 4.000 Jan-40 (14.6y) 900 +131

SSELN Baa1/BBB+/BBB+ 3.500 Mar-32 (6.8y) 600 +96

SSELN Baa1/BBB+/BBB+ 3.375 Sep-32 (7.2y) 850 +107

NGGLN Baa1/BBB+/BBB+ 3.631 Sep-31 (6.2y) 700 +103

NGGLN Baa1/BBB+/BBB+ 3.724 Nov-34 (9.5y) 600 +131

NGGLN Baa1/BBB+/BBB+ 3.917 Jun-35 (10.0y) 700 +137

RWE Baa1/BBB+/BBB+ 3.625 Jan-32 (6.6y) 500 +90

RWE Baa1/BBB+/BBB+ 4.125 Feb-35 (9.7y) 500 +110

ENBW Baa1/BBB+/BBB+ 3.500 Jul-31 (6.1y) 650 +85

ENBW Baa1/BBB+/BBB+ 4.300 May-34 (9.0y) 850 +113

ENBW Baa1/BBB+/BBB+ 3.750 Nov-35 (10.5y) 1000 +119

Alfa Laval launches M&A-driven EUR300m 6.25yr

** Sweden’s Alfa Laval AB (BBB+), a provider of first-rate products in the areas of heat transfer, separation, and fluid handling, mandated BNP Paribas, HSBC, Nordea and SEB as Active Bookrunners to arrange a series of fixed income investor calls on 10-Jun. A EUR300m no grow 6.25yr senior unsecured bond has followed

IPTs: Books open for EUR300m no grow Sep 2031s at m/s +125 area

• The notes are being issued via Alfa Laval Treasury International AB
• Expected to be rated BBB+ by S&P
• The use of proceeds will be for general corporate purposes and partial financing of the acquisition of Fives Cryogenics. Alfa Laval announced the ~EUR800m acquisition of the Fives Cryogenics business unit, part of the French Fives Group, earlier this year. More details here
• In terms of outstanding bond debt, Alfa Laval has just two lines outstanding in the form of EUR300m 0.875% Feb 2026s and EUR300m 1.375% Feb 2029s both launched in Feb 2022. The longest of those was spotted on screens at i +68 bid when the new mandate was first announced Monday morning
• With the company having little outstanding, fair value for the new sub-benchmark deal is fairly subjective, but we saw it somewhere in the m/s +85-90 region

ABP Finance offers new 12yr GBP alongside tender

** UK borrower ABP Finance plc (Baa2/A-), a special purpose refinancing company, mandated BNP Paribas, Lloyds and NatWest as Active Bookrunners to arrange a series of fixed income investor calls commencing 9-10 Jun. A GBP 12yr benchmark senior secured bond, with limited recourse, is now out

IPTs: Books open for GBP300m no grow Jun 2037 secured benchmark at mid gilts (UKT 1.75% Sep 2037) +140 area

• The bond is expected to be rated Baa2 by Moody’s and A- by Fitch
• A concurrent tender offer on ABP Finance plc’s GBP500m 6.25% Dec 2026 notes, capped at GBP150m, has also been announced. That deal launched way back in 2011 and marks the company’s only outstanding bond issue

Indicative pre-announce bid side levels vs gilts

* Airport / Infra Comparables *

Ticker Rating Cpn(%) Issue Dt Mty Dt Tenor Amt(£m) G+(bid)

GATAIR Baa1/BBB+/BBB+ 5.750 Jan-12 Jan-37 11.6y 300 105

GATAIR Baa1/BBB+/BBB+ 3.125 Sep-17 Sep-39 14.3y 350 107

GATAIR Baa1/BBB+/BBB+ 5.500 Apr-24 Apr-40 14.8y 250 107

MAGAIR Baa1/NR/BBB+ 4.750 Feb-14 Mar-34 8.8y 450 85

MAGAIR Baa1/NR/BBB+ 2.875 Nov-17 Mar-39 13.8y 300 98

MAGAIR Baa1/NR/BBB+ 6.125 Sep-23 Mar-41 16.3y 360 106

MAGAIR Baa1/NR/BBB+ 5.750 Apr-24 Mar-42 17.3y 300 110

HTHROW NR/BBB+/A- 5.875 May-11 May-41 15.9y 750 104

TCLAU Baa1/NR/A- 6.6087 Apr-25 Apr-40 14.8y 300 113

In the pipeline

** Belgium’s leading postal operator and a provider of international third-party logistics and global cross-border services bpost SA/NV (A-), has mandated BNP Paribas, BofA Securities and ING as Joint Global Coordinators and Joint Bookrunners and Belfius and KBC as additional Joint Bookrunners, to arrange a series of fixed income investor calls 10-11 Jun. A EUR 7yr benchmark transaction is to follow. Net proceeds from the issue of the bonds will be applied by the issuer towards the cash tender offer for its outstanding EUR650m 1.25% Jul 2026 fixed rate notes issued in 2018 (ISIN BE0002601798)

** French construction engineering company Altrad Investment Authority (BBB-) hired BNP Paribas, Credit Agricole CIB, J.P Morgan, and Natixis as Global Coordinators and Joint Lead Managers, and CIC, Commerzbank, and Societe Generale as Active Joint Lead Managers to arrange a series of fixed income investor calls 11-12 Jun. An inaugural EUR benchmark dual-tranche offering across 4yr and 7yr maturities may follow

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