20th May 2025

IG corporate borrowers are continuing their recent assault on the European bond market on Tuesday as another quintet vie for attention in the single currency, making the most of what remains a wide-open issuance window.

Boosting volumes on Tuesday is Danish pharmaceutical Novo Nordisk (EUR 2yr FRN, as well as 3yr, 5.25yr, 8yr and 12yr FXD) which is backing up a Monday mandate with the second five-part euro corporate trade in as many days.

Novo Nordisk is joined in the senior market by Daimler Truck (EUR 2yr FRN & long 4yr FXD two-part) and Kering (EUR long 4yr), whilst the recently revitalised hybrid market is seeing deals from EDP (EUR 30NC6.75 green) and Arkema (EUR300-400m PNC5).

The latest flurry comes after five issuers were out Monday with a combined 10 tranches worth EUR7.3bn despite what was a softer broader market tone following Moody’s downgrade of the US late on Friday.

Dominating proceedings yesterday was Siemens AG, with the German conglomerate bringing just the third five-part euro corporate trade of the year.

At EUR4bn it was the joint-second biggest single currency corp trade of 2025, with the transaction made up of a EUR1bn 2yr floater alongside EUR1bn 4yr, EUR500m 8yr, EUR1bn 11yr and EUR500m 20yr fixed lines.

Combined demand peaked at EUR18.7bn before settling at EUR16.3bn after the issuer cut 29.5-32.5bp off IPTs to print with NICs of 5-10bps on the fixed-rate tranches.

Joining Siemens at the start of the week we had Unilever (EUR700m 5yr & EUR800m 10yr two-part; 5bp NICs & jt bks 3.45bn from 4.3bn peak), Eurogrid (EUR800m 12yr green; zero NIC & bk 3.75bn from 4.3bn peak), APRR (EUR500m no grow Jan 2031s; 0.5bp NIC & 1.1bn bk from 2.3bn peak) and Shurgard (EUR500m no grow 10yr; -2bp NIC & 1.75 bk from 2.7bn high), with the latter emerging from the pipeline after calls last week.

Tuesday’s issuers, along with the rest still sat in the bulging pipeline, will no doubt have noticed that all of Monday’s trades saw some sensitivity in the book building process. That in turn may lead to them leaving a bit more in the way of a premium on the table to ensure smooth execution.

Summary of Monday's EUR IG corporate trades:

Novo Nordisk out with another jumbo

** Danish pharmaceutical company Novo Nordisk A/S (Aa3/AA) on Monday asked BNP Paribas, BofA Securities, Deutsche Bank and HSBC to act as Global Coordinators and BNP Paribas, BofA Securities, Danske Bank, Deutsche Bank, HSBC, ING, Morgan Stanley, Nordea and SEB to act as Active Bookrunners on a potential euro multi-tranche issue. The transaction comprises a EUR 2yr floater as well as 3yr, 5.25yr, 8yr and 12yr fixed-rate tenors

IPTs:

EUR May 2027 benchmark FRN at 3mE +60 area

EUR May 2028 benchmark FXD at m/s +75 area

EUR Aug 2030 benchmark FXD at m/s +95 area

EUR May 2033 benchmark FXD at m/s +115 area

EUR May 2036 benchmark FXD at m/s +135 area

• The notes are being issued via Novo Nordisk Finance (Netherlands) B.V, a wholly owned subsidiary of Novo Nordisk A/S
• Issue is expected to be rated Aa3/AA by Moody's/S&P
• Funds generated will be used for general corporate purposes, including refinancing of existing indebtedness
• Novo Nordisk was last in the market in May 2024 when it printed an M&A-driven EUR4.65bn four-part (2yr, long 4yr, long 6yr & May 2034) which was the second biggest euro corp deal of 2024
• Looking at Novo Nordisk’s most recently issued bonds, as well as the curves of other lower-beta corporates, bankers on the new deal were pitching the initial NICs on the fixed-rate tranches at around 35bps. The FRN is a bit more subjective, but they saw the starting NIC slightly smaller at ~30bps

€€€ Novo Nordisk (Aa3/AA) - Indicative Pre-Announce Comps €€€

(Bid side vs I-Sprd)

Issuer Ratings Size Coupon Maturity Tenor I-Sprd

NOVOB Aa3/AA € 1,300m 3.375 May-26 1.0 +29

NOVOB Aa3/AA € 500m 1.125 Sep-27 2.4 +41

NOVOB Aa3/AA € 650m 0.125 Jun-28 3.0 +41

NOVOB Aa3/AA € 1,000m 3.125 Jan-29 3.7 +44

NOVOB Aa3/AA € 500m 1.375 Mar-30 4.9 +52

NOVOB Aa3/AA € 1,000m 3.250 Jan-31 5.7 +63

NOVOB Aa3/AA € 1,350m 3.375 May-34 9.0 +84

JNJ Aaa/AAA € 600m 2.700 Feb-29 3.8 +43

JNJ Aaa/AAA € 700m 3.050 Feb-33 7.8 +67

JNJ Aaa/AAA € 1,000m 3.350 Feb-37 11.8 +92

GOOGL Aa2/AA+ € 1,500m 2.500 May-29 4.0 +40

GOOGL Aa2/AA+ € 1,500m 3.000 May-33 8.0 +76

GOOGL Aa2/AA+ € 1,250m 3.375 May-37 12.0 +99

ROSW Aa2/AA € 600m 3.312 Dec-27 2.5 +31

ROSW Aa2/AA € 750m 3.204 Aug-29 4.3 +40

ROSW Aa2/AA € 650m 3.227 May-30 5.0 +45

ROSW Aa2/AA € 900m 3.586 Dec-36 11.6 +85

SANFP Aa3/AA € 650m 2.750 Mar-31 5.8 +62

NOVNVX Aa3/AA- € 600m 1.125 Sep-27 2.4 +27

NOVNVX Aa3/AA- € 1,850m 0.000 Sep-28 3.4 +40

NOVNVX Aa3/AA- € 750m 1.375 Aug-30 5.2 +52

NOVNVX Aa3/AA- € 750m 1.700 Aug-38 13.2 +88

MRK Aa3/A+ € 1,000m 1.875 Oct-26 1.4 +34

MRK Aa3/A+ € 850m 3.250 May-32 7.0 +83

MRK Aa3/A+ € 850m 3.500 May-37 12.0 +112

LLY Aa3/A+ € 750m 2.125 Jun-30 5.0 +60

LLY Aa3/A+ € 600m 0.625 Nov-31 6.5 +68

LLY Aa3/A+ € 600m 0.500 Sep-33 8.3 +68

PFE A2/A € 750m 2.875 May-29 4.0 +58

PFE A2/A € 1,000m 3.250 May-32 7.0 +88

PFE A2/A € 750m 3.875 May-37 12.0 +114

Daimler Truck offers fixed and floating option

** German manufacturer for commercial vehicles Daimler Truck AG (A3/A-) is out with an opportunistic two-part euro offering made up of a 2yr FRN and a long 4yr FXD. Joint Active Bookrunners are Goldman Sachs Bank Europe SE, LBBW, MUFG and SEB

IPTs:

EUR300m (min) May 2027 FRN at 3mE +75 area

EUR Nov 2029 benchmark at m/s +125 area

• Expected issue ratings are A3 / A- by Moody's / S&P
• The notes are being issued via the company’s Dutch arm Daimler Truck International Finance B.V
• Guarantors are Daimler Truck Holding AG and Daimler Truck AG
• Use of proceeds is general corporate purposes
• The new fixed line fits Daimler Truck’s curve between EUR500m 3.875% Jun 2029s launched in 2023 and EUR600m 3.375% Sep 2030s launched in 2024. Those lines were spotted by leads at i +80 and +99 respectively pre-announcement, with an interpolation suggesting fair value for the new Nov 2029s in the m/s +90 area

€€€ Daimler Truck 2yr FRN & Long 4yr Senior Dual-Tranche – Comps €€€

** Indicative Pre-Announcement Bid-Side Levels **

TICKER RATINGS COUPON MATURITY I-SPREAD

DTRGR A3 / A- / - 1.625% Apr-2027 +55

DTRGR A3 / A- / - 3.125% Mar-2028 +60

DTRGR A3 / A- / - 3.875% Jun-2029 +80

DTRGR A3 / A- / - 3.375% Sep-2030 +99

VLVY A2 / A / A 3.125% Aug-2029 +72

VLVY A2 / A / A 3.000% May-2030 +76

Kering also touts Nov 2029s

** French luxury goods company Kering SA (BBB+) is out with an opportunistic EUR long 4yr benchmark under the guidance of Active Bookrunners HSBC, JP Morgan and NatWest

IPTs: Books open for EUR Nov 2029 benchmark at m/s +120-125

• Expected issue rating is BBB+ by S&P
• Funds generated are being earmarked for general corporate purposes
• Kering has a well-stocked euro curve which includes EUR750m 3.25% Feb 2029s and EUR1bn 3.625% Sep 2031s that both launched in 2023 and were bid on screens at i +72 and +114 when the new trade was announced
• Interpolating those lines would put fair value for the Nov 2029 benchmark at around m/s +85, which bankers away from the deal said they agreed with

EDP sticks with green format for latest hybrid

** Portuguese electric utilities company EDP S.A (Baa2/BBB/BBB) this morning came out with a EUR 30NC6.75 green hybrid benchmark transaction. Global Coordinators and Bookrunners are Goldman Sachs Bank Europe SE and HSBC, NatWest is ESG Coordinator, whilst Joint Lead Managers are BofA Securities, CaixaBI, Goldman Sachs Bank Europe SE, HSBC, JP Morgan, Mediobanca, MUFG, Natixis, NatWest and Santander

IPTs: Books open for May 2055 non-call Feb 2032 green hybrid benchmark at 5.125-5.25%

• Expected instrument ratings are Baa3 / BB+ / BB+ (Moody's / S&P / Fitch)
• Included is a coupon step-up of 25bps if not called on 27-Feb-2037 and an additional 75bps (100 cumulative) is still not called on 27-Feb-2052. Also included is a 500bps step-up if the issuer does not elect to redeem the notes following a Change of Control Event
• The net proceeds of the hybrid will be used to finance or refinance, in whole or in part, EDP's Eligible Green Project portfolio as detailed in the Green Framework
• Working out from the company’s two-longest green hybrids, namely the 4.75% non-call May 2030s (4.369% YTR) and 4.625% non-call Mar 2031s (4.423% YTR), puts fair value for the latest subordinated offering in the region of 4.625%

€€€ EDP EUR 30NC6.75 - Comparables €€€

** Pre-Announcement Indicative Bid-Side Levels **

TICKER Hybrid Rating CPN (%) RESET PRICE I-SPRD YTR

EDPPL Baa3/BB+/BB+ 4.750% May-30 101.625 +215 4.369%

EDPPL Baa3/BB+/BB+ 4.625% Mar-31 101.000 +213 4.423%

**SNR Curve*

Ticker Rating Amt.(mm) CPN(%) Maturity I-SPRD

EDPPL Baa2/BBB/BBB 750m 3.500% Jul-31 +97

EDPPL Baa2/BBB/BBB 750m 4.375% Apr-32 +107

Arkema offers new hybrid ahead of upcoming call date

** French adhesive manufacturing company Arkema (Baa1/BBB+) is offering a EUR300-400m PNC5 hybrid note this morning via Joint Active Bookrunners BNP Paribas, Societe Generale and Standard Chartered Bank AG

IPTs: Books open for EUR300-400m (max) perp non-call May 2030 hybrid at 4.75-4.875%

• Expected issue ratings are Baa3 / BBB- (Moody’s / S&P)
• Included is a coupon step-up 25bps if not called on 27-May-2035 and a further 100bps if still not called on 27-May-2050. A 500bp step-up is also included if a Change of Control Call Event occurs and the notes are not called
• Funds from the bond will be used for general corporate purposes including the refinancing of the EUR300m 1.5% hybrid notes which are callable in Jan 2026 (ISIN: FR0013478252)
• Arkema’s only other outstanding hybrid is a EUR400m 4.8% non-call Mar 2029 line launched in Mar 2024 on the back of demand of EUR2.6bn. That bond was yielding 4.053% pre-announcement of the latest trade

Arkema Senior:

Bond Ratings Tenor ESG Bid i-sprd (bps)

AKEFP 4 1/4 05/20/30 Baa1 / BBB+ / NR 5.0 i+74

AKEFP 3 1/2 01/23/31 Baa1 / BBB+ / NR 5.7 i+89

Hybrids:

Bond Ratings Tenor (to Reset) ESG YtR / Bid i-sprd (bps) Senior-Sub

AKEFP 4.8 PERP-NC-03/29 Baa3 / BBB- / NR 3.8 4.053% / i+191 117

Recent Hybrids:

VIEFP 4.371 PERP-NC-05/30 NR / BB+ / NR 5.0 GREEN 4.283% / i+204 120

IREIM 4 1/2 PERP-NC-04/30 NR / BB+ / BB+ 4.9 4.543% / i+232 130

ENELIM 4 1/4 PERP-NC-04/30 Baa3 / BB+ / BBB- 4.9 4.328% / i+211 124

IBESM 4.247 PERP-NC-08/30 Baa3 / BBB- / BBB 5.3 GREEN 4.127% / i+188 117

SRGIM 4 1/2 PERP-NC-12/29 Ba1 / BBB / BBB- 4.6 4.154% / i+196 114

ENGIFP 4 3/4 PERP-NC-06/30 Baa3 / BBB- / BBB- 5.1 GREEN 4.218% / i+198 113

EDPPL 4 3/4 05/29/54-NC-05/30 Baa3 / BB+ / BB+ 5.0 GREEN 4.385% / i+215 114

ACFP 4 7/8 PERP-NC-09/30 NR / BB / BB 5.3 4.633% / i+238 117

In the pipeline

** Australian state-owned telecom NBN Co Limited (Aa3/AA+) mandated Barclays, BNP Paribas, Credit Agricole CIB, Deutsche Bank and HSBC as Joint Bookrunners to arrange a series of fixed income investor meetings commencing 16-20 May. A EUR 7.5yr senior unsecured benchmark sustainability offering may follow, subject to market conditions. The notes will be issued in accordance with NBN Co Limited’s Sustainability Bond Framework. The net proceeds from the Offering will be exclusively applied to finance or refinance, in part or in full, new and/or existing eligible green and social projects that meet one or more of the categories of eligibility as recognised in the Green Bond Principles as Eligible Green Projects or the Social Bond Principles as Eligible Social Projects, each as outlined in the Framework. The allocation of funds is estimated to be a minimum of 80% for eligible green projects

** Finnish producer of folding boxboard and white kraftliners Metsa Board (Baa2/BBB-) mandated Danske Bank and SEB as Joint Lead Managers to arrange a series of fixed income investor calls and meetings commencing 19-20 May. A EUR 200-250m 6yr senior unsecured green bond offering will follow. The bonds are expected to be rated Baa2 by Moody’s. The Green Bond offering will be issued in accordance with Metsa Board's Green Finance Framework

** Unrated Belgian international energy infrastructure company Fluxys SA mandated BNP Paribas as Global Coordinator along with Belfius, Credit Agricole CIB, ING and SMBC as Active Bookrunners to arrange a series of investor calls on 19-20 May. An inaugural EUR500m no grow 5yr senior unsecured bond offering is expected to follow. The net proceeds of the issue of the notes will be used for general corporate purposes

** Belgian specialty chemicals company Syensqo SA (Baa1/BBB+) hired BNP Paribas, BofA Securities and Credit Agricole CIB as Global Coordinators together with Citi, JP Morgan, KBC and Morgan Stanley as Active Bookrunners to arrange a series of fixed income investor calls 19-20 May. A EUR two-part 6yr and 10yr benchmark fixed rate trade is expected to follow. The issuer intends to use the net proceeds for general corporate purposes. The notes are expected to be rated Baa1 by Moody’s and BBB+ by S&P

** German technology and services provider Robert Bosch GmbH (A/A) hired BNP Paribas, Deutsche Bank and Mizuho as Global Coordinators and Commerzbank, LBBW and Santander as Active Bookrunners to arrange a series of fixed-income investor calls commencing on 19-20 May for a multi-tranche euro benchmark. The deal will be made up of an 18-month floater as well as 3yr, 6yr, 9yr and 12yr fixed-rate issuers. The notes are expected to be rated A by S&P and A by Fitch. Net proceeds will be used for general corporate purposes and partial financing of the acquisition of the global HVAC business for residential and light commercial buildings from Johnson Controls International and Hitachi

** Suedzucker AG (Baa2/BBB-), a German integrated group of companies with plant-based solutions for food, animal feeding and energy industries, mandated BNP Paribas, Deutsche Bank and HSBC as Joint Global Coordinators and Structuring Agents and together with BofA Securities, ING and Rabobank as Joint Active Bookrunners, to arrange a series of fixed income investor calls commencing 19-20 May. A EUR PNC5.25 hybrid benchmark offering may follow. The bonds will be issued via Suedzucker International Finance B.V and guaranteed by Suedzucker AG. Expected to be rated Ba1/BB by Moody’s/S&P. The proceeds will be used for general corporate purposes, including refinancing of the outstanding EUR700m non-call Jun 2025 hybrid notes (ISIN: XS0222524372) which are subject of a tender offer

** Ceske drahy a.s. (Baa2), the 100% state-owned Czech national railway operator, mandated BNP Paribas and Erste Group Bank as Joint Global Coordinators and Joint Bookrunners and ING, KBC and Raiffeisen Bank International as Joint Bookrunners to arrange a series of fixed-income investor calls commencing 19-20 May. A EUR500m no grow 5yr (Jul 2030) bond offering will follow. The notes are expected to be rated Baa2 by Moody’s

** Danish-based global pharmaceutical company H. Lundbeck A/S (BBB-) mandated BNP Paribas, BofA Securities, Danske Bank, Nordea and SEB as Joint Active Bookrunners to arrange a series of fixed income investor calls 20-21 May. A EUR500m no grow 4yr bond offering is expected to follow. The notes are expected to be rated BBB- by S&P. The net proceeds of the issue will be used for the repayment of indebtedness granted by the Joint Bookrunners, incurred in connection with the acquisition of Longboard Pharmaceuticals Inc

** Metso Corporation (Baa2/BBB), a Finnish frontrunner in sustainable technologies, end-to-end solutions and services for aggregates production, mining, and metals refining mandated Citi, Commerzbank, Nordea, and SEB as Joint Bookrunners, to arrange a series of fixed-income investor meetings commencing 19-20 May. A EUR300m no grow 7yr will follow. The notes are expected to be rated Baa2 by Moody’s

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

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