CORP SNAPSHOT: Market still active but deal flow eases

By Anil MayreShare

28th May, 2025

With Wednesday seen as the last realistic day of the week for notable corporate issuance due to Thursday’s holiday in parts of Europe and Friday typically being a quieter day, IG-rated borrowers did return to the market with a strong showing. But the pace was not as frantic as that seen in recent weeks. In total, five more EUR lines launched on Wednesday. Four of these were new issues, with the fifth being a tap.

Following a quartet of 2-part deals out on Tuesday, Mercedes-Benz International Finance B.V has launched its own dual-tranche offering, targeting 3.25yr and 6.25yr maturities. Deutsche Post is out with a 7yr benchmark, Glencore Capital Finance is bringing a long 6yr and HOWOGE is tapping its June 2030 Social bond (see below for more).

These follow the sale of nine single currency lines on Tuesday for EUR4.5bn alongside a GBP hybrid. Among the EUR supply were senior and Green bonds, all but two of which were benchmarks. One of the day's sub-EUR500m deals was a 2yr FRN, keeping some attention on that pricing format.

Tuesday's 2-part offerings came from Amprion GmbH selling EUR1bn (3% 12/29 and 3.875% 06/36 Green), British Telecommunications plc offering EUR700m of 3.75% 01/35 senior notes and a GBP400m 30.5NC5.5 hybrid, Coca-Cola Europacific Partners printing a EUR300m 2yr FRN and a EUR500m 3.125% 03/31, and National Grid North America a EUR500m 3.15% 06/30 and EUR700m 3.917% 06/35 Green combo. Single tranche offerings came from Mercialys (EUR300m 4% 06/32) and RCI Banque (EUR500m 3.375% 06/30).

Summary of Tuesday’s EUR IG corporate trades (fixed rate):

Issuer	Size (EURm)	Maturity	IPTs	Re-offer	IPTs to Pxd	NICs	Books (EURm)	Final Cover Ratio (X)	Peak Books (EURm)
Amprion GmbH	500	05/12/2029	m/s+120a	ms/+85	-35	0	1700	3.4	2300
Amprion GmbH	500	05/06/2036	m/s+170a	m/s+135	-35	5	2200	4.4	2500
British Telecommunications Plc	700	03/01/2035	m/s+170a	m/s+135	-35	0	2500	3.57	3300
Coca-Cola Europacific Partners	500	03/06/2031	m/s+120-125	m/s+90	-32.5	0	1850	3.7	2200
Mercialys SA	300	04/06/2032	m/s+220a	m/s+177	-43	-3	1500	5	2100
National Grid North America	700	03/06/2035	m/s+175a	m/s+140	-35	3	2100	3	2900
National Grid North America	500	03/06/2030	m/s+130a	m/s+95	-35	5	1450	2.9	2500
RCI Banque S.A.	500	06/06/2030	m/s+165a	m/s+130	-35	5	2450	4.9	2450

Deutsche Post 7yr follows triple tranche

**Deutsche Post AG (Ticker: DHLGR; Country: DE), rated A2 stable (Moody’s) / A- stable (Fitch), has mandated BofA Securities as Sole Global Coordinator and BofA Securities (B&D), Deutsche Bank, Société Générale as Joint Bookrunners for a EUR 7yr FXD Senior, Unsecured, RegS Bearer due 5 June 2032, Expected Issue Rating: A2 (Moody’s) / A- (Fitch). Pay date 5 June.

IPTs: ** MS+115bps area **

After printing a triple tranche deal for EUR2.25bn on 17 March, Deutsche Post AG is back in the market, bringing a 7yr senior unsecured sale.
Books opened on Jun 2032 notes at m/s+115bp area. The new issue sits just one month out from the May 2032s seen at +60, but that is an older trade issued in May 2020.
Around one year longer is the Jul 2033, a former 10yr bond, seen at +71 on the comps list but quoted marginally wider on screens. The borrower issued March 2030 and March 2034s as part of its triple tranche sale a couple of months ago, and those were seen at +63 and +86.
Factoring all those in could indicate fv around the 75bp level, and a starting NIC in the region of 40bp. However, a source away from the deal saw fv a little wider, around +80, therefore pointing to an initial 35bp NIC. Otherwise, a lead manager deemed fv to be about +78, sitting between those estimates.

€€€ Deutsche Post (A2/-/A-) - Indicative Pre-Announce Comps €€€

(Bid side vs I-Sprd)

Issuer	Ratings	Size	Coupon	Maturity	Tenor	I-Sprd
DHLGR	A2/-/A-	€ 850m	3.000	Mar-30	4.8	+63
DHLGR	A2/-/A-	€ 750m	1.000	May-32	7.0	+60
DHLGR	A2/-/A-	€ 500m	3.375	Jul-33	8.1	+71
DHLGR	A2/-/A-	€ 750m	3.500	Mar-34	8.8	+86
DHLGR	A2/-/A-	€ 1,000m	3.500	Mar-36	10.8	+86
DHLGR	A2/-/A-	€ 650m	4.000	Mar-40	14.8	+125

Glencore brings long 6yr senior

**Glencore Capital Finance DAC (Ticker: GLENLN, Country: IE), rated A3 (stable) / BBB+ (stable) by Moody’s / S&P and guaranteed by Glencore plc, Glencore International AG, Glencore (Schweiz) AG, has mandated Barclays, Deutsche Bank, Standard Chartered Bank as Active Bookrunners for a EUR Benchmark Reg S, Bearer, New Global Note (NGN) Senior, Unsecured due 4 February 2032, Expected Note Ratings: A3 / BBB+ by Moody’s / S&P. Pay date 4 June.

IPTs: MS+180bps area

Anglo-Swiss multinational commodity trading and mining company Glencore is out on Wednesday with a long 6yr senior unsecured transaction. The Feb 2032 maturity would mark its second longest outstanding EUR bond, slotting behind the Mar 2033s launched back in Feb 2021.
The issuer last printed EUR notes in Apr 2024, via a EUR600m 4.154% Apr 2031 line at m/s+135. That was seen around i+130 ahead of launch. Considering the 2033s mentioned above which were seen at +140, even though they were issued over four years ago, sources away from the deal were seeing fv in the context of m/s +135-140.

[Mining Rating Size(€m) Cpn(%) Maturity I-Spread
Glencore A3/BBB+ 950 1.125 28-Mar 71
Glencore A3/BBB+ 600 0.75 29-Mar 103
Glencore A3/BBB+ 600 4.154 Apr-31 130
Glencore A3/BBB+ 500 1.25 Mar-33 140
Anglo American Baa2/BBB+ 500 4.5 28-Sep 84
Anglo American Baa2/BBB+ 500 3.75 29-Jun 95
Anglo American Baa2/BBB+ 500 5 31-Mar 125
Anglo American Baa2/BBB+ 750 4.125 Mar-32 139
Anglo American Baa2/BBB+ 745 4.75 Sep-32 140
BHP Billiton A1/A- 750 3.25 27-Sep 49
BHP Billiton A1/A- 750 1.5 30-Apr 76
BHP Billiton A1/A- 750 3.125 Apr-33 95

HOWOGE taps Social bond

HOWOGE Wohnungsbaugesellschaft mbH, rated A (st.) / AA- (st.), has mandated Deutsche Bank as Global Coordinator and Deutsche Bank (B&D), ING, Morgan Stanley, Societe Generale as Active Bookrunners for a EUR200m (exp) tap of the EUR300m 5 June 2030 Senior Unsecured, RegS, Bearer, Expected Issue Ratings (S/F): A / AA-. Pay date 06 June.

IPTs: MS+145 area bps

Municipal residential real estate company HOWOGE Wohnungsbaugesellschaft mbH (A/AA-), owned by the State of Berlin, has launched a tap of its Jun 2030 Social bond. The expected increment is EUR200m, on the original EUR500m amount.
The 3.875% originally priced on 29 May 2024 at +95 and was seen at +115 on the comps list. As such fv for the tap is in line, positioning the deal for a starting NIC of 30bp.

* Indicative bid side i-spread *

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

HOWOGE -/A/AA- 3.875 Jun-30 (5.0y) 300 3.33% I+115

HOWOGE -/A/AA- 1.125 Nov-33 (8.4y) 700 3.75% I+130

Mercedes-Benz targets 2-part

**Mercedes-Benz International Finance B.V. (Ticker: MBGGR, Country: NL), guaranteed by Mercedes-Benz Group AG (Ticker: MBGGR, Country: DE), rated A2 (stable) by Moody's / A (stable) by S&P, has mandated BayernLB, Commerzbank, Deutsche Bank (B&D), LBBW, Santander, UniCredit as Bookrunners for a EUR bmk two-part Senior, Unsecured, RegS, Bearer, Classical Global Notes with EUR 3.25yr (05 September 2028) and EUR 6.25yr (05 September 2031) tranches, Expected Issue Ratings: A2 by Moody's / A by S&P. Pay date 5 June.

IPTs:

EUR 3.25yr @ MS + 90-95bps

EUR 6.25yr @ MS + 125-130bps

Mercedes-Benz International Finance B.V announced a new 2-tranche sale of Sep 2028 and Sep 2031 maturities to slot into its well-stocked curve, while also marking the issuer's first single currency offering since Aug 2024. That was an FRN. The last fixed deal was slightly further back in May 2024.
Books opened on new 3.25yr and 6.25yr bonds at m/s+90-95bp and m/s+125-130bp. The shorter notes park themselves between the issuer's May 2028 and July 2029 notes, seen on the comps list at i+44 and i+56. A source away from the deal saw fv around the 55bp mark, indicating a starting NIC of around 35-40bp.
The longer tranche will be flanked by May 2031 and Nov 2031 notes, seen bid at i+78 and i+81. The former was issued in May 2023 but the latter even earlier, back in Oct 2019. Taking into account more recent issuance, fv was seen around 90bp from the banker off the deal, also suggesting a 35-40bp starting NIC to put it in line with recent pricing strategies.
Among those more recent offerings, BMW Finance NV sold May 2028 and May 2031 notes as part of a 3-part trade on 13 May. They landed at at +55 and +90, with the former seen bid at +53 ahead of launch.

*** MERCEDES-BENZ - Pre-announcement Comparables ***

* Indicative bid side i-spread *

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

MBGGR A2/A/Au 3.000 Jul-27 (2.1y) 850 2.43% I+47

MBGGR A2/A/Au 3.250 Sep-27 (2.3y) 850 2.44% I+47

MBGGR A2/A/Au 1.375 May-28 (3.0y) 1250 2.48% I+44

MBGGR A2/A/Au 1.500 Jul-29 (4.1y) 1500 2.71% I+56

MBGGR A2/A/Au 0.750 Feb-30 (4.7y) 750 2.81% I+61

MBGGR A2/A/Au 2.375 May-30 (5.0y) 750 2.89% I+68

MBGGR A2/A/Au 0.750 Sep-30 (5.3y) 1000 2.92% I+69

MBGGR A2/A/Au 3.250 Nov-30 (5.5y) 1150 3.04% I+79

MBGGR A2/A/Au 2.000 Feb-31 (5.8y) 750 3.04% I+78

MBGGR A2/A/Au 3.700 May-31 (6.0y) 1000 3.10% I+81

MBGGR A2/A/Au 1.125 Nov-31 (6.4y) 1000 3.13% I+81

MBGGR A2/A/Au 3.250 Jan-32 (6.6y) 850 3.27% I+94

MBGGR A2/A/Au 0.750 Mar-33 (7.8y) 1000 3.25% I+85

BMW A2/A/- 2.625 May-28 (3.0y) 1000 2.57% I+53

BMW A2/A/- 3.250 May-31 (6.0y) 750 3.19% I+90

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