14th May 2025

Coming into Wednesday's session the weekly euro IG corporate bond total already stood at EUR14.825bn, the second biggest for the asset class year-to-date and more than the average forecast of EUR13bn put forward in our latest issuance poll.

We are FAR from done yet though, with five corporates emerging from the pipeline this morning after mandates earlier in the week and being joined by another three opportunistic names.

Between them, they are offering a combined 12 tranches (the second most daily lines of 2025), with variety again on offer as issuers tout a mixture of vanilla, green and hybrid paper.

Amongst Wednesday’s borrowers we have Pfizer Inc which is out with a EUR 4/7/12/20yr four-part in what is its first single currency trade since 2017. The company is joined by McDonald’s also of the US which is also adding to the recent reverse yankee flurry.

Elsewhere on Wednesday there is plenty of scarcity value on the menu with a number of issuers offering first time or rare bonds, with full details below.

Providing the focus on Tuesday were four names which printed a combined EUR4.075bn via deals in both senior and hybrid format.

Leading the way was German automaker BMW, which issued EUR2.5bn via a three-part (EUR1bn 3yr, EUR750m 6yr & EUR750m 9.5yr; -2.5/+2.5/+2.5bp NICs) into combined demand which peaked at EUR8.7bn before settling at EUR6.5bn.

Swisscom added a EUR500m no grow 7yr into the mix whilst Canada’s Magna International followed up a series of calls with a slightly shorter EUR575m (from benchmark) 6yr. Both landed with 5bp NICs, but demand was much larger for Magna at EUR3.2bn versus the EUR1.15bn on Swisscom.

Catering for higher-beta palates we had Veolia (EUR500m no grow PNC5.25) which brought its first hybrid in green format, with the trade landing 50bps inside 4.875% and flat to fair value on the back of a 4x covered (5.4x peak) book.

Summary of Tuesday's EUR IG/split-rated corporate trades:

Pfizer goes big with first euro trade since 2017

** US pharmaceutical and biotechnology corporation Pfizer Inc (A2/A) on Tuesday mandated Goldman Sachs & Co LLC, Barclays, BNP Paribas, Deutsche Bank, HSBC and Mizuho to act as Joint Active Bookrunners on a EUR 4-, 7-, 12- and 20-yr multi-tranche fixed-rate senior unsecured SEC-registered benchmark transaction

IPTs:

EUR May 2029 benchmark at m/s +105 area

EUR May 2032 benchmark at m/s +130 area

EUR May 2037 benchmark at m/s +160 area

EUR May 2045 benchmark at m/s +195 area

• The notes are being issued via Pfizer Netherlands International Finance B.V and are fully and unconditionally guaranteed by Pfizer Inc
• Expected ratings are A2 by Moody´s / A by S&P
• Pfizer intend to use net proceeds from the sale of the securities for general corporate purposes, including working capital, capital expenditures, payment of dividends, share repurchases, acquisitions and the refinancing of existing debt
• The company hasn’t issued euro debt since way back in 2017 when it took EUR4bn out of the market via a fixed/floating four-part. The only line still outstanding from that four-part is a EUR750m 1% ex-10yr line maturing in Mar 2027

McDonald’s contributes 7yr to supply buffet

** US fast food giant McDonald’s Corporation (Baa1/BBB+) is out with an opportunistic EUR 7yr benchmark via Active Bookrunners Citigroup, Credit Agricole CIB, HSBC and Rabobank

IPTs: Books open for EUR May 2032 benchmark at m/s +140 area

• Expected issue ratings are Baa1/BBB+ (Moody’s/S&P)
• Funds from the 7yr will be used for the general corporate purposes of the issuer
• McDonald's last crossed The Atlantic in Nov 2023 when it printed a EUR2bn three-part which included a EUR700m 3.875% Feb 2031 tranche which landed at m/s +90 on a 2.36x covered book
• The Feb 2031s were spotted on screens at around i +90 bid this morning, with us seeing fair value for the new 7yr in the m/s +100-105 region when equating for the extra tenor

Transdev Group makes euro debut

** French borrower Transdev Group (Baa2), one of the global and multimodal public transportation operator leaders, hired BNP Paribas, Credit Agricole CIB and ING as Global Coordinators along with BofA Securities, CIC, La Banque Postale, Natixis, Societe Generale and UniCredit as Active Bookrunners to arrange a series of investor calls 12-13 May. A debut dual-tranche senior unsecured EUR300m no grow 3yr and EUR500m no grow 7yr bond offering is now live. HSBC is Passive Bookrunner

IPTs:

EUR300m no grow May 2028s at m/s +135 area

EUR500m no grow May 2032s at m/s +175 area

• Expected issue rating is Baa2 by Moody’s
• The net proceeds of the issue of the notes will be used for general corporate purposes including principally the refinancing of existing financial indebtedness of the issuer
• With the issuer having no bonds outstanding, leads instead highlighted the curves of similar-rated peers as a barometer for fair value

Indicative bid-side levels vs. I-spd

** Infra-like BBB universe **

Issuer Ratings (M/S/F) Coupon Maturity TTM I-Spread

VIEFP Baa1/BBB/- 2.974% Jan-31 5.7y +91

VIEFP Baa1/BBB/- 3.571% Sep-34 9.3y +105

VPARKI -/BBB/- 4.500% Apr-30 4.9y +107

FERSM -/BBB/BBB 3.250% Jan-30 4.7y +84

ATOSTR Baa3/BBB/BBB 2.000% Jan-30 4.7y +101

ATOSTR Baa3/BBB/BBB 4.750% Jan-31 5.7y +120

ATOSTR Baa3/BBB/BBB 4.250% Jun-32 7.1y +147

HITTFP -/BBB-/BBB 3.375% Apr-29 3.9y +88

HITTFP -/BBB-/BBB 4.250% Mar-30 4.8y +106

HITTFP -/BBB-/BBB 1.475% Jan-31 5.7y +110

SUEZFP Baa2/-/- 4.625% Nov-28 3.5y +90

SUEZFP Baa2/-/- 2.375% May-30 5.0y +90

SUEZFP Baa2/-/- 5.000% Nov-32 7.5y +134

Prysmian makes hybrid debut to help fund Channell Commercial acquisition

** Italy’s Prysmian SpA (BBB-), a global leader in cable systems for energy and telecommunications, hired Credit Agricole CIB as Sole Structuring Agent, and BofA Securities, Credit Agricole CIB, JP Morgan, Mediobanca and UniCredit as Joint Lead Managers, to arrange a series of fixed income investor calls 12-13 May. A debut EUR PNC5.25 hybrid has now emerged

IPTs: Books open for inaugural EUR perp non-call Aug 2030 hybrid benchmark at 5.875-6% (annual yield)

• The notes are expected to be rated BB by S&P
• The coupon steps up 25bps if not called on 21-Aug-2035 and another 75bps if not called on 21-Aug-2050 (+100bps cumulative). Also included is a 500bps step-up following a Change of Control if not called
• Net estimated proceeds of the transaction will be used in the context of the acquisition of Channell Commercial Corporation and for general corporate purposes
• Prysmian offered its first senior paper since 2015 in Nov last year, printing EUR850m Nov 2028 and EUR650m Nov 2031 senior lines to help fund its purchase of Encore Wire
• To help gauge fair value for the debut hybrid, bankers running the trade highlighted the subordinated bonds of other sector peers

Benchmark Senior Prysmian curve

Ticker Ratings (M/S/F) Size (EURmm) Coupon Tenor Maturity YTM I-Spread

PRYIM -/BBB-/- 850 3.625% 3.6 Nov-28 3.29 +120

PRYIM -/BBB-/- 650 3.875% 6.6 Nov-31 3.75 +143

EUR Relevant Hybrids

Ticker Ratings (M/S/F) Size (EURmm) Coupon Yrs to Reset Reset Date Price i-spread Sen/Sub YTC % YTR %

ABESM -/BB/BB+ 750 4.870% 4.6 Nov-29 101.1 +237 +143 4.59 4.60

TELEFO Ba2/BB/BB+ 1000 6.135% 4.7 Feb-30 106.0 +251 +173 4.69 4.75

TELEFO Ba2/BB/BB+ 950 6.750% 6.1 Jun-31 109.6 +259 +162 4.88 4.93

TELEFO Ba2/BB/BB+ 1100 5.752% 6.7 Jan-32 103.3 +280 +170 5.17 5.18

ENELIM Baa3/BB+/BBB- 900 4.750% 3.8 Feb-29 101.9 +207 +136 4.21 4.23

ENELIM Baa3/BB+/BBB- 1000 4.250% 4.7 Jan-30 99.6 +210 +132 4.34 4.33

ENELIM Baa3/BB+/BBB- 750 6.625% 5.9 Apr-31 110.5 +225 +137 4.56 4.63

IREIM -/BB+/BB+ 500 4.500% 4.7 Jan-30 99.4 +241 +163 4.65 4.64

ALOFP Ba2/-/- 750 5.868% 4.0 May-29 102.4 +304 +207 5.20 5.23

PROXBB Baa3/BB+/- 700 4.750% 6.1 Jul-31 98.0 +281 +181 5.14 5.12

ERFFP Ba2/-/BB 400 5.750% 6.7 Jan-32 102.4 +296 +140 5.32 5.33

FRPTT -/BB+/BBB+ 750 5.000% 5.9 Apr-31 100.8 +253 +171 4.86 4.86

ROQFRE -/BB+/- 600 5.494% 4.5 Nov-29 100.0 +329 +167 5.49 5.49

More hybrid paper comes from Abertis

** Spanish toll road management company Abertis Infraestructuras SA (BBB-/BBB) is working an opportunistic EUR500m no grow PNC7.75 hybrid. Global Coordinators are BofA Securities and JP Morgan, with Joint Bookrunners Barclays, CaixaBank, Citi, Commerzbank, Goldman Sachs Bank Europe SE, HSBC Continental Europe, ING Bank N.V, IMI-Intesa Sanpaolo, Mediobanca, Mizuho, Morgan Stanley, MUFG and SMBC

IPTs: Books open for EUR500m no grow perp non-call Feb 2031 hybrid at 5.125-5.25% (annual yield)

• The notes are being issued via Abertis Infraestructuras Finance B.V
• Expected instrument ratings are BB / BB+ (S&P / Fitch)
• The coupon steps up 25bps if not called on 23-Feb-2036 and a further 75bps on 23-Feb-2051 (100bps cumulative)
• Use of proceeds: General corporate purposes, including the refinancing of existing debt within the group
• Abertis issued a hybrid as recently as Nov 2024 when it brought EUR750m 4.87% non-call Feb 2030s into demand of EUR2.6bn (EUR2.7bn peak)
• Working out from the existing non-call Feb 2030s which leads saw yielding 4.42% pre-announcement, fair value was being pitched at around 4.625% on the new hybrid

€€€ ABERTIS EUR 500m WNG PNC5.75 HYBRID - Comps €€€

(Indicative bid-side pre-announced)

Ticker Rating (M/S/F) Amt Out Coupon Reset Date Px i-sprd YTR

ABESM -/BB/WD 750 2.625 Apr-27 98.500 +137 3.43%

ABESM -/BB/BB+ 750 4.870 Feb-30 101.875 +211 4.42%

Heidelberg Materials touts first euro of 2025

** German building material company Heidelberg Materials AG (Baa2/BBB) is working an opportunistic EUR long 5yr benchmark via Joint Bookrunners BofA Securities, Citigroup, Commerzbank, ING, SEB and Standard Chartered Bank AG

IPTs: Books open for EUR Jul 2030 benchmark at m/s +125-125

• The notes are being issued through Heidelberg Materials Finance Luxembourg S.A (Country: LU)
• Expected issue ratings are Baa2 / BBB by Moody’s / S&P
• Proceeds are being earmarked for general corporate purposes, including the refinancing of existing debt
• Heidelberg tapped the market twice in 2024, bringing EUR500m 3.375% Oct 2031 and EUR700m 3.95% Jul 2034 greens, with the former highlighted on the official comps list sent this morning at i +71 bid

€€€ NEW EUR CORP DEAL: Heidelberg Materials EUR Long 5yr Senior Offering - Comps €€€

** Please note new bonds will be EUR1k+1k/retail denoms, in line with existing notes

Ticker I+ (BID) Coupon Amount (EUR m) Ratings (M/S)

HEIGR 1.750 4/28 54 1.750% € 750 Baa2 / BBB

HEIGR 3.375 10/31 71 3.375% € 500 Baa2 / BBB

HEIGR 3.750 5/32 96 3.750% € 750 Baa2 / BBB

---- Subscribe to read more ----

To receive this analysis plus much more, subscribe to IGM. Request your free trial of the service today.