24th June 2025

European equities are a sea of green on Tuesday after the announcement of a ceasefire between Israel and Iran, for now at least, with four IG corporate names looking to capitalise on the positivity and raise euro funding today.

Leading the way on the day is French oil and gas company TotalEnergies with a EUR 6/10/15yr three-part benchmark transaction, whilst more vanilla paper comes from US automaker Ford (EUR 3yr benchmark).

Offering ethical paper we have Heimstaden Bostad which is touting a debut EUR500m no grow 5.25yr green, whilst Snam (EUR 7yr benchmark) is offering its first issue in the newly established EuGB format.

Broader market conditions were more downbeat on Monday after the US strikes on Iran over the weekend, but that didn’t stop another three issuers jumping in with euro trades.

American Honda Finance Corporation (EUR800m 3yr / EUR500m 6yr two-part) and Wolters Kluwer N.V (EUR500m no grow 5.25yr) tapped the senior market, whilst OMV Aktiengesellschaft (EUR750m PNC5.5) offered up a higher-beta hybrid option.

Despite headline uncertainty elsewhere, investors remained keen to add corporate paper to their inventories with combined demand for the EUR2.55bn of paper coming in at EUR6.95bn (EUR8.4bn peak).

That resulted in economic funding for the day’s senior offerings with the NICs on American Honda finishing up at zero/5bps after seeing combined demand of EUR3.1bn, whilst Wolters Kluwer offered up a 5bp NIC and saw its deal 3.4x covered at reoffer.

The biggest single book on the day came for OMV’s hybrid which saw demand peak at EUR2.65bn before falling to EUR2.15bn after IPTs of 4.875% area were moved to a 4.375% reoffer (12.5bp NIC).

Summary of Monday's EUR IG corp trades:

TotalEnergies leads the way with another triple tranche

** French multinational integrated oil and gas company TotalEnergies SE (Aa3/A+) this morning hired Active Joint Bookrunners BBVA, Deutsche Bank, JP Morgan, MUFG, RBC Capital Markets, Societe Generale and Wells Fargo Securities for a EUR 6/10/15yr three-part benchmark transaction

IPTs:

EUR Jul 2031 benchmark at m/s +110 area

EUR Jul 2035 benchmark at m/s +140-145

EUR Jul 2040 benchmark at m/s +165-170

• The notes are being issued via TotalEnergies Capital International
• Expected issue ratings are Aa3/A+ by Moody’s/S&P
• Funds generated are earmarked for general corporate purposes
• TotalEnergies has already printed a EUR3.15bn three-part in Feb this year, which was made up of EUR1bn 8yr, EUR850m 12yr and EUR1.3bn 20yr tranches that marked the company’s first euro senior bonds since 2020. Demand for the three lines peaked at EUR9.7bn (EUR7.6bn final) and saw the 8yr squeezed in 35bps during the execution process to price with a 5bp NIC, whilst the longer deals saw 30bps of compression and 10bp NICs
• Those Feb issued bonds were included on the official list circulated this morning (below), with bankers close to the trade pitching fair value for the new 6yr, 10yr and 15yr tranches at m/s +75, +105 and +125 respectively when adjusting the curve accordingly

€€€ TotalEnergies 6y/10y/15y – COMPS €€€

(indicative bid I-spread pre-announced)

Ticker Rating (M/S) Amt Out Cpn Mat i-sprd

TTEFP Aa3/A+ 500 0.952 May-31 +66

TTEFP Aa3/A+ 1,500 1.994 Apr-32 +72

TTEFP Aa3/A+ 1,000 3.160 Mar-33 +89

TTEFP Aa3/A+ 850 3.499 Mar-37 +112

TTEFP Aa3/A+ 650 1.535 May-39 +113

TTEFP Aa3/A+ 1,000 1.618 May-40 +111

TTEFP Aa3/A+ 1,300 3.852 Mar-45 +147

Snam offers its first EuGB

** Italian utility company Snam SpA (Baa2/A-/BBB+) hired Joint Bookrunners Banca Akros, Barclays, BNP Paribas, Credit Agricole CIB, Goldman Sachs International, IMI – Intesa Sanpaolo, ING, JP Morgan, Mediobanca, MUFG, Standard Chartered Bank and UniCredit for a debut EUR 7yr benchmark European Green Bond (EuGB)

IPTs: Books open for inaugural EUR Jul 2032 benchmark EuGB at m/s +135-140

• Expected issue ratings (M/S/F): Baa2 / A- / BBB+
• The notes are designated as “European Green Bond” or “EuGB” in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council. The issuer intends to allocate an amount equivalent to the European Green Bond proceeds to capital and operating expenditures in accordance with the gradual approach, referred in Article 4(1) of Regulation (EU) 2023/2631. The proceeds will be used on activities that are environmentally sustainable under Article 3 of Regulation (EU) 2020/852, according to the methodology in the allocation report that will be drawn-up annually by Snam until the full allocation of the European Green Bonds proceeds, in accordance with Article 11 of Regulation (EU) 2023/2631. See the company’s Sustainable Finance Framework here
• This marks just the fourth ever EuGB bond from an IG corporate issuer to follow deals from Norsk Hydro ASA (EUR500m no grow 8yr) and Covivio (EUR500m no grow 9yr) earlier this month which backed up the inaugural line from Snam’s peer A2A SpA (EUR500m 3.625% Jan 2035; -5bp NIC) in Jan. Combined demand for that EUR1.5bn of paper came in at a final EUR7.7bn, suggesting plenty of investor demand for the new product remains in play
• Snam has a number of bonds outstanding across green, SLB and transition formats with the existing curve spotted as follows by leads pre-announcement
• Looking at the existing levels of Snam’s outstanding bonds, bankers running the debut EuGB were seeing fair value for the new line in the m/s +low 100s

€€€ SNAM Inaugural EuGB EUR Benchmark 7yrs - Comparables €€€

Pre-announcement indicative levels vs I-spread (bid)

SRGIM Baa2/A-/BBB+ 4.000 Nov-29 4.4 +77

SRGIM Baa2/A-/BBB+ 0.750 Jun-30 5.0 +79

SRGIM Baa2/A-/BBB+ 0.625 Jun-31 6.0 +93

SRGIM Baa2/A-/BBB+ 3.375 Nov-31 6.4 +95

SRGIM Baa2/A-/BBB+ 3.875 Feb-34 8.7 +117

SRGIM Baa2/A-/BBB+ 1.250 Jun-34 9.0 +105

SRGIM Baa2/A-/BBB+ 1.000 Sep-34 9.2 +112

Heimstaden Bostad makes green debut

** Swedish residential real estate company Heimstaden Bostad AB (publ), rated BBB-/BBB-, is out with an opportunistic EUR500m no grow 5.25yr green debut via Joint Green Structuring Advisors Danske Bank and ING, as well as Joint Bookrunners BNP Paribas, Citi, Danske Bank, Deutsche Bank, ING, JP Morgan, SEB and UniCredit

IPTs: Books open for EUR500m no grow Oct 2030 green debut at m/s +205 area

• Expected issue ratings are BBB- by S&P and BBB- by Fitch
• Included are the following Financial Covenants:
  • Consolidated Solvency Ratio shall not exceed 65% (Incurrence)
  • Consolidated Secured Indebtedness / Consolidated Total Assets shall not exceed 45% (Incurrence)
  • Consolidated Coverage Ratio shall not be less than 1.5x (Maintenance)
• Heimstaden intends to apply an amount equal to the net proceeds from an offer of notes to finance or refinance, in whole or in part, green or sustainable projects, in line with Heimstaden Bostad’s Green Bond Framework dated 2023
• The inaugural green bond fits the company’s existing euro curve between EUR500m 3.875% Nov 2029 and EUR750m 1.625% Oct 2031 vanilla lines which leads spotted trading at i +162 and +183 bid respectively pre-announcement. Interpolating those suggests fair value for an Oct 2030 maturity in the m/s +170 area, which one banker close to the trade agreed with

€€€ HEIMSTADEN BOSTAD 5.25y GREEN – COMPS €€€

(indicative bid I-spread pre-announced)

Ticker Rating (M/S/F) Amt Out Coupon Maturity i-sprd

HEIBOS -/BBB-/BBB- 500 1.375 Jul-28 122

HEIBOS -/BBB-/BBB- 750 0.750 Sep-29 150

HEIBOS -/BBB-/BBB- 500 3.875 Nov-29 162

HEIBOS -/BBB-/BBB- 750 1.625 Oct-31 183

FMCC follows in American Honda’s slipstream

** Ford Motor Credit Company LLC (Ba1/BBB-/BBB-), the financial service arm of US automaker Ford Motor Company, is touting an SEC-registered EUR 3yr benchmark via Active Bookrunners Barclays, BNP Paribas, Commerzbank, Goldman Sachs International, ICBC Standard and Societe Generale

IPTs: Books open for EUR Jul 2028 benchmark at m/s +200 area

• Expected ratings (M/S/F): Ba1 / BBB- / BBB-
• Use of proceeds is for general corporate purposes
• FMCC has already printed a euro line this year when bringing a EUR750m 4.066% Aug 2030 bond in Feb at m/s +178 on the back of a 3.27x covered book
• Fair value for this one is seen in the m/s +150 region when referencing the official comps, suggesting a fairly defensive approach with a starting NIC of 50bps on offer

EUR Comps

Rating Coupon Maturity Tenor Size I-sprd

F Ba1/BBB-/BBB- 6.125 May-28 2.9y 600m +131

F Ba1/BBB-/BBB- 4.165 Nov-28 3.4y 850m +156

F Ba1/BBB-/BBB- 5.125 Feb-29 3.7y 750m +175

F Ba1/BBB-/BBB- 4.445 Feb-30 4.6y 1000m +193

F Ba1/BBB-/BBB- 4.066 Aug-30 5.2y 750m +202

REWE preps a two-part

** German retail and tourism group REWE (BBB) mandated BNP Paribas and ING as Global Coordinators and together with CaixaBank, IMI-Intesa Sanpaolo and LBBW as Joint Bookrunners, to arrange a series of fixed income investor calls on 25-Jun. A EUR1bn no grow two-part 3yr and 7yr trade is expected to follow

• The notes will be issued via REWE International Finance B.V
• REWE has just the one euro benchmark outstanding in the form of a debut EUR900m 4.875% Sep 2030 SLB launched in Sep 2023. That deal priced at m/s +170 into a book of EUR3.3bn, but has since tightened in to i +105 (bid)

€€€ REWE International Finance B.V. 3yr + 7yr Dual-Tranche – Comparables €€€

Indicative pree-announcement levels vs I-spread (bid)

* Retailers EUR Secondaries *

Rating Coupon Maturity Tenor Size I-sprd

REWEEG -/BBB/- 4.875 Sep-30 5.2y 900m +105

WESAU A3/A-/- 3.277 Jun-32 7.0y 600m +93

ADNA Baa1/BBB+/- 3.500 Apr-28 2.8y 500m +49

ADNA Baa1/BBB+/- 3.250 Mar-33 7.7y 500m +100

TSCOLN Baa3/BBB/BBB 0.375 Jul-29 4.1y 750m +78

TSCOLN Baa3/BBB/BBB 3.375 May-32 6.9y 500m +113

WOWAU Baa2/BBB/- 0.375 Nov-28 3.4y 550m +65

WOWAU Baa2/BBB/- 3.750 Oct-32 7.3y 500m +124

CAFP -/BBB/- 4.125 Oct-28 3.3y 850m +67

CAFP -/BBB/- 2.875 May-29 3.9y 500m +89

CAFP -/BBB/- 4.375 Nov-31 6.4y 750m +123

CAFP -/BBB/- 3.625 Oct-32 7.3y 750m +126

* Consumer EUR Secondaries *

Rating Coupon Maturity Tenor Size I-sprd

BKNG A3/A-/- 3.625 Nov-28 3.4y 500m +55

BKNG A3/A-/- 3.625 Mar-32 6.7y 650m +96

PNDORA Baa2/BBB/- 4.500 Apr-28 2.8y 500m +77

PNDORA Baa2/BBB/- 3.875 May-30 4.9y 500m +111

HMBSS -/BBB/- 0.250 Aug-29 4.2y 500m +64

HMBSS -/BBB/- 4.875 Oct-31 6.3y 500m +120

Bazalgette to offer rare Blue Bond

** UK construction company Bazalgette Finance plc (Baa1/BBB+) mandated Lloyds and RBC Capital Markets as Global Co-ordinators and CIBC Capital Markets and SMBC as Active Bookrunners to arrange a series of fixed income investor calls on 24-Jun. A GBP250m no grow 8yr senior secured Blue Bond is expected to follow

• Expected to be rated Baa1 by Moody’s and BBB+ by Fitch
• The issuance will be in line with the issuer’s Sustainable Finance Framework, which is in alignment with the ICMA Green Bond Principles and ICMA Practitioner’s Guide “Bonds to Finance the Sustainable Blue Economy” 2023

Already in the pipeline:

** Polish multi-utility group Orlen S.A (A3/BBB+) has hired BNP Paribas, ING and Societe Generale as Joint Global Coordinators, together with Deutsche Bank and CaixaBank as Joint Bookrunners to arrange a series of fixed income investor calls commencing 23-Jun. A EUR 7yr green benchmark trade may follow

** EPH (BBB-/BBB-), a Czech diversified and vertically integrated leading pan-European utility, mandated Goldman Sachs Bank Europe SE, ING (Sole Green structurer), JP Morgan, MUFG and SMBC as Joint Lead Managers and Bookrunners to arrange a series of fixed income investor meetings commencing 23-24 Jun. A EUR 7yr benchmark green bond will follow

** 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.

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