The European IG corporate market is seeing some activity for the first time since 4-Aug this morning with the euro market tentatively reopening after the summer recess.

Having experienced the first complete zero issuance week of the year last week, the sector is seeing one issuer live on Monday in the form of Volvo Treasury AB which is offering its third euro line of the year and its second in EUR500m no grow 3yr format.

That is kicking off a week which bankers in our supply survey were calling for an average of EUR3.5bn to come to the euro corporate market, although the range of estimates was large at EUR0-8bn, suggesting some have more business lined up than others.

In the third week of August last year, we saw two IG corporate names raise a combined EUR1.35bn, before an uptick in the final week of the month where 19 corporate names printed a combined EUR14.75bn in the single currency via 25 separate tranches. We would expect a fairly similar pattern this year.

Volvo back for another 3yr

** Swedish manufacturing corp AB Volvo (publ), rated A2/A, is working a EUR500m no grow 3yr unsecured trade via Active Bookrunners BofA Securities, NatWest, Nordea and Societe Generale

IPTs: Books open for EUR500m no grow Aug 2029s at m/s +70 area

• The notes are being issued via Volvo’s financial arm Volvo Treasury AB
• Expected issue ratings are A2 / A by Moody's / S&P
• Proceeds from the new deal are to be used for general corporate purposes
• This is the company’s second 3yr benchmark offering of the year having printed a EUR500m 3.125% May 2029 in May. Marketing started at m/s +75 area before going straight to a final spread of m/s +42 on the back of initial demand of EUR2.7bn+. That equated to a final NIC of 2bps, with demand easing slightly to EUR2.25bn at allocations
• The May 2029s were spotted trading at i +34 by leads ahead of the latest offering, with a slight curve extension pointing to fair value for the new Aug 2029s at m/s +35 and in turn a starting NIC of 35bps

€€€ Volvo Treasury AB (A2/A) - €500m 3yr - Indicative Pre-Announce Comps €€€

(Bid side vs I-Sprd)

Issuer Rating Coupon Maturity Tenor Size I-sprd

VLVY Volvo Treasury AB A2 /A 3.125 Feb-29 2.5y 500m +28

VLVY Volvo Treasury AB A2 /A 3.125 May-29 2.7y 500m +34

VLVY Volvo Treasury AB A2 /A 3.125 Aug-29 3.0y 500m +34

VLVY Volvo Treasury AB A2 /A 3.000 May-30 3.8y 500m +36

VLVY Volvo Treasury AB A2 /A 3.250 Feb-33 6.5y 500m +66

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