CORP SNAPSHOT: Carrefour wraps up busy week with SLB

Coming into Friday’s session we had already surpassed the average weekly euro supply estimate of EUR11.5bn, but we aren’t quite done yet with Carrefour SA adding a EUR500m no grow Jun 2030 sustainability-linked bond.

That will put the final weekly single currency haul at EUR12.75bn and just short of the previous week’s EUR12.95bn.

Offering encouragement to Carrefour no doubt will be the huge orders seen for the EUR12.25bn to have priced so far this week, with combined demand finalising at EUR53.8bn from a peak of EUR66.2bn.

Carrefour markets another SLB

** French retailer Carrefour S.A (BBB) this morning mandated Global Coordinators BNP Paribas, Credit Agricole CIB, Goldman Sachs Bank Europe SE, HSBC, ING and Natixis for a EUR500m no grow long 5yr sustainability-link bond

IPTs: Books open for EUR500m no grow Jun 2030 SLB at m/s +135 area

• Expected issue rating is BBB by S&P
• Proceeds from the SLB are to be used for general corporate purposes, including the refinancing of existing debt. Note, the company has a EUR750m 1.25% ex-10yr issued via Carrefour SA maturing in Jun, alongside a EUR400m 0.107% ex-4yr also maturing in Jun. The latter was issued through the company’s subsidiary Carrefour Banque SA
• The Sustainability Performance Targets are:
  • SPT for KPI 1.A: Reduce Scope 1 and 2 GHG emissions by 39.5% by 31-Dec-2027 compared to 2019
  • SPT for KPI 1.B: Reduce Scope 3 GHG emissions from goods and services purchased by 5 megatonnes by 31-Dec-2027 compared to 2019
• The step-up mechanism is 25bps from the next coupon payment date up to the maturity date if one or two of the SPTs is not met (i.e. 3 coupons potentially impacted)
• Carrefour’s SLB Framework & SPO are available on issuer's website under sections "year 2023" & "bond issuances"
• It is no surprise that the new trade is coming in SLB format with Carrefour's last six euro lines issued having come in the format. The longest of those were highlighted on the official comps list sent this morning (below)
• Adjusting the company’s existing curve, one banker running the trade was seeing fair value for the latest SLB at m/s +100 (35bps NIC)

Comps are as follows:

MS+

CAFP 4.125 10/28 79

CAFP 2.375 10/29 84

CAFP 3.75 10/30 103

CAFP 4.375 11/31 115

CAFP 3.625 10/32 126

In the pipeline

** Stoneweg European REIT (BBB-/BBB-), a diversified pan-European logistics and office REIT, formerly known as Cromwell European REIT, mandated Citi, Credit Agricole CIB, Deutsche Bank AG and ING as Active Bookrunners and ING as Sole ESG Structuring Advisor to arrange a series of fixed-income investor calls on 17-Jan and physical meetings in London on 20-Jan. A EUR500m (exp) 6yr senior unsecured green transaction is expected to follow

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

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