28th May, 2025

The non-covered FIG market continues to be active, with three Euro deals in play and two sterling transactions. Continuing yesterday's subordinated theme Eurobank is bringing an inaugural AT1 deal, and there are two SNP deals. One is for ABN Amro with a EuGBS Green label, and one for NIBC Bank. The sterling market, which has been quite for a week or so, sees two deals in the form of a senior preferred deal for BFCM and a 6NC5 SNP for Danske Bank.

These follow Tuesday's supply being eagerly seized upon by investors as credit indices began to tighten from last Friday’s levels on President Trump's tariff announcement with the EU. Good quality subordinated paper has been sought after and there was a decent amount of it on offer, EUR2.75bn to be precise, made up of AT1, RT1 and Tier 2 paper. Total peak books were EUR20.20bn, which fell slightly to a very robust EUR17.9bn at allocations. There was also a senior preferred deal for Piraeus Bank which was 7x covered. In total for the day's EUR3.25bn of fresh paper we saw EUR21.6bn of orders giving a decent cover ratio of 6.64x. A quick recap of Tuesdays deals:

Axa SA EUR1bn PNC5.5 RT1 at 5.75%, books EUR6.8bn from a peak EUR 8.6bn

Axa SA EUR1bn 30.10NC10.10 Tier 2 at m/s +190, books EUR3.5bn versus a peak of EUR4.5bn

Commerzbank AG EUR750m PNC 04/2033 AT1 at 6.625%, books EUR7.6bn from a peak of EUR8.1bn

Piraeus Bank SA EUR500m 3.5NC2.5 Green Senior Preferred at m/s+115, books EUR3.7bn.

The first showings of the AT1 and RT1 deals were very positive on the break as both deals bid 30 cents above reoffer in the grey market. It was also worth noting this was the first RT1 deal since March 26.

ABN AMRO works 4yr Green SNP

**ABN AMRO Bank N.V. (ticker: "ABNANV"), rated Aa3 (stb.) / A (stb.) / A (stb.) by Moody's/S&P/Fitch has mandated ABN AMRO (B&D), Citi, Crédit Agricole CIB, Lloyds and Morgan Stanley as Joint Lead Managers for their upcoming EUR benchmark 4-year EuGBS & ICMA Green fixed-rate Senior Preferred RegS bearer issuance ('the transaction'). The transaction will be launched in the near future, subject to market conditions with the notes expected to be rated Aa3 / A / A+ (Moody’s/S&P/Fitch).

IPT MS+90-95bps area

• ABN Amro last visited the fixed rate market in February, with a Green labelled senior preferred deal, a EUR750m trade priced at m/s +68 from IPTs of +95 with books at EUR2bn.
• That deal was spotted on comps list bid at m/s +70
• Based on comps we see fv for the new deal at m/s+62.5, which was verified by a lead.

Eurobank joins AT1 party with inaugural deal

**Eurobank Ergasias Services and Holdings S.A., rated BB+ (S&P, Stable) / BBB- (Fitch, Stable), has mandated BNP PARIBAS (B&D), BofA Securities, Citi, Deutsche Bank, Morgan Stanley, UBS as Joint Lead Managers and Ambrosia, Euroxx as Co-Lead Managers for a EUR 500m (wng) Fixed Rate Reset Additional Tier 1 Perpetual Contingent Temporary Write-Down Notes, exp rating: Ba3 (Moody’s). Pay date 4 June. First Reset Date: 4 June 2031.

IPTs 7.250% area

• Eurobank has seen an opportunity to launch its inaugural AT1 deal, following the success of Commerzbank and Axa SA transactions on Tuesday.
• As an inaugural trade it is hard to establish fv, but people on the deal are calling it close to 6.625%.

NIBC Bank returns with Green SNP

**NIBC Bank N.V., rated BBB (S&P)/BBB+ (Fitch), has mandated BNP Paribas, BofA Securities, Deutsche Bank, Morgan Stanley and Santander for a new EUR Senior Non-Preferred 5yr 500m (WNG) Green transaction due 5 June 2030. Pay date 5 June.

IPTs: MS+155 area

• NIBC Bank last visited the senior space in November 2023, with a 5-year SNP deal that priced at m/s +300 from a m/s +325 IPT. Books were EUR1.2bn for the EUR500m transaction.
• That deal was spotted on the comps list this morning bid at m/s+103, a big move for the credit.
• We see fv around the m/s+125/130 area, which was verified with leads.

BFCM taps into sterling market

**Banque Federative du Credit Mutuel (“BFCM”), rated A1 (Moody’s) / A+ (S&P) / AA- (Fitch Ratings), has mandated Barclays and NatWest as Joint Lead Managers for a GBP Benchmark RegS, Dematerialised Notes in Bearer form (au porteur) Senior Preferred due 10 September 2031 , exp ratings A1 (Moody’s) / A+ (S&P) / AA- (Fitch Ratings). Pay date 10 June.

IPTs UKT 0.250% 31-July-2031 + 125 bps area

• BFCM last accessed the sterling market in February 2024, with a 5-year SNP which priced at UKT+105. The GBP 600m deal garnered GBP1.6bn worth of orders.
• That deal was spotted on comps list this morning bid at UKT+103
• We see fv in the region of UKT+110. People involved in the deal see UKT+105

Danske adds sterling SNP

**Danske Bank A/S, rated A1/A+/A+/A+ by Moody’s/S&P/Fitch/Scope (all stable), has mandated BMO Capital Markets, Danske Bank, Lloyds and NatWest as Joint Bookrunners for a GBP Benchmark Reg S, Bearer, Classic Global Note, Direct, unconditional and unsecured Non-Preferred Senior Notes intended to constitute MREL Eligible Liabilities (see Condition 5.2 in the Base Prospectus) issue due 4 October 2031, Exp. Issue Ratings Baa1/A-/A+/A by Moody’s/S&P/Fitch/Scope. Pay date 4 June 2025. Call Option: 4 October 2030. Coupon: Fixed, semi-annually, Actual/Actual (ICMA). If Call Option not exercised, a reset fixed rate of interest per annum determined as the sum of the prevailing 1-year UKT Govt. Benchmark plus the Margin, payable semi-annually in arrear. First short coupon. ISIN XS3087262583

IPTs: UKT+130-135bps

• Danske last visited the sterling market in August 2023 with a 5NC4 senior preferred. The GBP350m deal priced at UKT+180, just 5bps inside IPT, as the book was on the small side at GBP425m.
• Based on comps we see fv around UKT +110/115 area, which leads agreed with.

£££ Danske Bank GBP BMK Long 6NC5 Non-Preferred Senior - Comps £££

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