CORP SNAPSHOT: Duo kick off another expected busy week

Broader risk markets remain on the backfoot at the start of the new week but that hasn’t stopped a couple of IG corporates forging ahead with euro funding plays on Monday, in the form of EDP (6.5yr green) and LEG Immobilien (EUR300m no grow 10yr).

That after having sat out the first shortened-week of 2025, IG corporate issuers got the new year underway with a bang last week as 15 names made euro funding plays despite continued angst in broader markets.

The first batch of names this year printed a combined 19 tranches worth EUR12.95bn to mark the sector’s biggest volume week since the w/e 15-Nov (EUR17.95bn).

That meant we beat the average supply estimate of EUR10.5bn given by participants in our weekly issuance poll conducted the prior Friday, but fell short of the most optimistic forecast of EUR15bn.

Variety in supply and keenness from investors following the recent paucity of supply resulted in last week’s issuers seeing some strong demand where orders for the EUR12.95bn on offer finished up at an impressive EUR44.75bn, giving a final average cover ratio of 3.69x.

However, continuing a theme seen toward the end of last year, some orders dropped out of the order books as investors put up a bit of resistance to tighter pricing levels.

Monday’s trades are kicking off a week which participants in our latest issuance poll are expecting to yield an average EUR11.5bn of single currency IG/split-rated corporate supply, with the highest guess coming in at EUR15bn.

Enforcing the notion of another busy week has been the flood of mandates this morning with five issuers announcing plans to come in the near future, in the form of Motability Operations Group (EUR 8/12yr & GBP 20yr social three-part), Inmobiliaria Colonial (exp EUR500m 5yr green), Teleperformance (EUR 5yr), Ipsos (EUR400m no grow 5yr) and Societa Esercizi Aereoportuali (EUR300m no grow 7yr).

Summary of last week's EUR IG corp trades:

EDP opens up 2025 account with green senior

** Portuguese utility company EDP (Baa2/BBB/BBB) is out with an opportunistic EUR 6.5yr green senior unsecured bond. Global Coordinators are Barclays and Credit Agricole CIB, ING is ESG Coordinator, whilst Joint Bookrunners are Barclays, Credit Agricole CIB, ABN AMRO, BBVA, CaixaBank, ING, SMBC, Societe Generale and UniCredit

IPTs: EUR Jul 2031 green benchmark at m/s +145 area

• The notes will benefit from a Keep Well Agreement provided by EDP S.A, and are being issued through EDP Servicios Financieros Espana S.A.U
• Expected issue ratings are Baa2 (stable) / BBB (stable) / BBB (stable) by Moody’s / S&P / Fitch
• An amount equal to the net proceeds of the Green Bond will be used to finance or refinance, in whole or in part, EDP's Eligible Green Asset Portfolio as set out in EDP’s Green Finance Framework
• EDP tapped the euro market three times last year, twice for hybrid debt and once for senior, but all in green format. The senior, EUR750m 3.5% Jul 2030s launched in Jan, landed at m/s +100 but was spotted trading tighter at i +98 bid on the official comps list sent this morning
• Looking at the issuer’s well-stocked euro green curve, one banker running the new trade was pitching fair value for the new Jul 2031s at m/s +110

Indicative, Pre-announcement I-sprds (bid-side)

EDPPL (Baa2/BBB/BBB) 4.125% 04/29 +80 *Green

EDPPL (Baa2/BBB/BBB) 1.875% 09/29 +81 *Green

EDPPL (Baa2/BBB/BBB) 3.875% 03/30 +92 *Green

EDPPL (Baa2/BBB/BBB) 3.500% 07/30 +98 *Green

EDPPL (Baa2/BBB/BBB) 4.375% 04/32 +117 *Green

LEG Immobilien returns after three-year break

** German property company LEG Immobilien SE (Baa2) hired BNP Paribas and Goldman Sachs as Joint Global Coordinators, as well as Barclays, Commerzbank, Deutsche Bank and UniCredit as Joint Active Bookrunners for an opportunistic EUR300m no grow 10yr trade

IPTs: Books open for EUR300m no grow Jan 2035s at m/s +185 area

• Expected issue rating is Baa2 by Moody's
• Proceeds from the bond are to be used for refinancing and general corporate purposes
• Covenants Limitations on the Incurrence of Financial Indebtedness:

1. Consolidated Net Financial Indebtedness / Total Assets ≤ 60%
2. Secured Financial Indebtedness / Total Assets ≤ 45%
3. Total Unencumbered Assets / Unsecured Financial Indebtedness ≥ 125% Maintenance of the Consolidated Coverage Ratio
4. Interest Coverage Ratio (Consolidated Adjusted EBITDA / Net Cash Interest) ≥ 1.8

• LEG last issued single currency paper in Jan 2022 when printing an equally weighted EUR1.5bn 0.375% Jan 2026, 0.875% Jan 2029 and 1.5% Jan 2034 three-part which saw combined demand of EUR4.5bn
• Referencing the comps (below) as a whole, we saw fair value for the new trade in the region of m/s +145-150, which one banker close to the trade broadly agreed with

€€€ LEG Immobilien EUR 10yr Comparables €€€

Indicative bid side levels:

Ticker Rating Coupon Maturity I-Sprd

LEGGR Baa2 / NR / NR 0.8750 % Jan-29 112

LEGGR Baa2 / NR / NR 0.7500 % Jun-31 125

LEGGR Baa2 / NR / NR 1.0000 % Nov-32 149

LEGGR Baa2 / NR / NR 0.8750 % Mar-33 146

LEGGR Baa2 / NR / NR 1.5000 % Jan-34 140

LEGGR Baa2 / NR / NR 1.6250 % Nov-34 137

ANNGR NR / BBB+ / BBB+ 0.6250 % Mar-31 122

ANNGR Baa1 / BBB+ / BBB+ 1.0000 % Jun-33 149

ANNGR Baa1 / BBB+ / BBB+ 4.2500 % Apr-34 155

ANNGR Baa1 / BBB+ / BBB+ 1.1250 % Sep-34 153

DLR Baa2 / BBB / BBB 0.6250 % Jul-31 130

DLR Baa2 / BBB / BBB 3.8750 % Sep-33 137

DLR Baa2 / BBB / BBB 3.8750 % Mar-35 145

EQIX Baa2 / BBB / BBB+ 3.2500 % Mar-31 108

EQIX Baa2 / BBB / BBB+ 3.6500 % Sep-33 127

EQIX Baa2 / BBB / BBB+ 3.6250 % Nov-34 133

Motability Operations readies three-part social

** UK borrower Motability Operations Group plc (A2/A) mandated Barclays, HSBC, Lloyds and NatWest Markets as Active Bookrunners to arrange a series of fixed income investor calls commencing Monday and Tuesday (13-14 Jan). A senior unsecured triple-tranche benchmark size social bond transaction is expected to follow across EUR 8yr and 12yr and GBP 20yr tenors.

• Expected ratings are A2 by Moody’s and A by S&P
• The issuance will be in line with the issuer’s Social Bond Framework
• This is a regular format for the borrower with it printing EUR700m 5.5yr, EUR1bn 10yr & GBP500m 30yr socials in Jan last year, following that up in Jun with more EUR1bn long 5yr, EUR1bn 11yr and GBP500m 30yr socials

Inmobiliaria Colonial to offer first euro deal since 2021

** Spanish REIT Inmobiliaria Colonial (Baa1/BBB+) has mandated BNP Paribas, CaixaBank, Credit Agricole CIB (Green Bond Structurer), IMI-Intesa Sanpaolo, Natixis and Societe Generale as Global Coordinators and Active Bookrunners, to arrange a series of fixed income investor meetings Monday and Tuesday (13-14 Jan). A EUR500m (exp) 5yr fixed rate senior unsecured Green bond offering may follow

• The bond is expected to be rated BBB+ by S&P
• Net proceeds of the contemplated Green bond issue will be used to finance or refinance Eligible Green Assets as further described in the Green Bond Framework
• Inmobiliaria Colonial last issued a new euro benchmark in Jun 2021, a EUR500m 0.75% Jun 2029 green which was tapped a month later for a further EUR125m. That bond was spotted on screens at i +90 bid this morning

Teleperformance to refresh EUR presence with 5yr

** France’s Teleperformance SE (BBB), a leader in outsourced customer and citizen experience management and related digital services, has mandated Citi, Deutsche Bank, JP Morgan, Standard Chartered Bank and Wells Fargo Securities as Active Bookrunners, to arrange a series of fixed income investor calls starting Monday (13-Jan). A 5yr senior unsecured bond transaction will follow

• Notes are expected to be rated BBB by S&P
• The net proceeds will be used for general corporate purposes
• Teleperformance last hit the euro bond market in Nov 2023 printing an equally-weighted EUR1.4bn two-part comprising 5.25% Nov 2028s and 5.75% Nov 2031s that were trading at +132 and +226 respectively this morning

Ipsos to make rare appearance

** French borrower Ipsos SA (Baa3/BBB), a leader in the market and public opinion research industry, has mandated Barclays, HSBC and Societe Generale as Joint Global Coordinators and BNP Paribas, Barclays, Credit Agricole CIB, CIC, HSBC, Natixis and Societe Generale as Joint Active Bookrunners to arrange a series of European fixed income investor calls Monday and Tuesday (13-14 Jan). A debut rated senior unsecured EUR400m no grow 5yr offering is expected to follow

• Ipsos has just one bond outstanding in the form of a soon-maturing EUR300m 2.875% Sep 2025 line launched in Sep 2018
• This new deal will be the first since the company received ratings from Moody’s and Fitch last week, with details here

SEA SpA to hit market ahead of upcoming maturity

** Italian airport operator SEA SpA (Societa Esercizi Aereoportuali), rated A- by S&P, has mandated BNP Paribas and Mediobanca as Global Coordinators, together with Banca Akros, Citi and IMI-Intesa Sanpaolo as Joint Bookrunners, to arrange a series of fixed income investor calls Monday and Tuesday (13-14 Jan). A EUR300m no grow 7yr senior unsecured bond is to follow

• SEA SpA has just one bond outstanding in the form of an ex-5yr EUR300m 3.5% bond that matures in Oct this year

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

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