CORP SNAPSHOT: Dutch duo offer ESG paper at start of week

Dutch duo CTP N.V (EUR 6/10yr two-part green) and Koninklijke Ahold Delhaize N.V (EUR 8yr SLB) are out with opportunistic ESG trades at the start of the new week, looking to capitalise on an upbeat broader market tone.

Monday’s issuers are kicking off a week which bankers in our latest issuance poll expect to yield an average EUR8.5bn euro IG/split-rated corporate supply.

Given the headline ECB verdict on Thursday, where a 25bps cut is baked in, the bulk of this week’s issuance is expected to come in the first half.

Taking into account the small window, it is also no surprise to see another three names announce euro deals for later in the week as detailed below.

As a reminder, the sector continued to produce deals at a decent pace last week as eight names printed twelve tranches worth EUR8.7bn to round off the busiest Feb for the asset class on record.

Last week’s total was, however, slightly short of the EUR9.5bn average estimate given by participants in our issuance poll, ending a three-week run of beating the average guess.

A top-line view showed that demand for euro corporate paper remained strong, but there were some signs of supply indigestion after a busy start to 2025 as the average cover ratio fell and NICs rose.

The average concession paid by issuers last week was hardly a large figure at 5.11bps but came after we saw negative average NICs in each of the previous two weeks, whilst for comparison the average NIC across all other euro corporate deals to price this year stands at just 0.22bps.

Last week’s higher figure came despite an average 34.25bps spread compression from IPTs to reoffer, with those moves also resulting in some orderbook attrition.

Final demand for the 12 lines was last communicated at EUR25.85bn (EUR34.25bn peak), with an average cover ratio of 3.58x recorded at reoffer.

Again, that looks impressive, but it is down from the 4.19x average cover ratio seen across the earlier 2025 corporate trades.

Also worth taking into account is that last week’s average cover ratio was given a big boost by Germany’s Metro AG whose EUR600m 5yr saw the biggest book of any IG corp transaction this year at EUR6.5bn.

Indeed, excluding Metro, the average cover ratio last week dropped sharply to 2.86x with many issuers seeing a relatively measured investor response compared to what we have been accustomed to.

That was certainly the case for rare Chinese corporate TCC Group which became the first IG name to pull a euro deal this year.

See the IGM CORP WEEKLY for a full rundown of last week’s offerings.

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

CPT returns with more greens

** Dutch commercial real estate developer CTP N.V (Baa3/BBB-) this morning came out with an opportunistic EUR 6yr and 10yr two-part green benchmark. Joint Bookrunners are Alpha Bank, BNP Paribas, Goldman Sachs Bank Europe SE, ING, Intesa Sanpaolo S.p.A, Morgan Stanley Europe SE and J.P Morgan SE

IPTs:

EUR Mar 2031 green benchmark at m/s +170-175

EUR Mar 2035 green benchmark at m/s +205-210

• Expected issue ratings are Baa3 by Moody’s / BBB- by S&P
• Included are the following Financial Covenants:
  • (i)Total Debt to Total Assets ≤ 60%
  • (ii) Secured Debt to Total Assets ≤ 40%
  • (iii) Interest Coverage Ratio ≥ 1.5x
  • (iv) Unencumbered Asset Test ≥ 125%
• Funds from the two-part are earmarked to finance or refinance a portfolio of eligible green projects selected in accordance with the use of proceeds criteria and selection process as described in CTP’s Green Bond Framework
• CTP tapped the euro market twice in 2024, both times bringing green bonds in the form of EUR750m Feb 2030s and EUR500m Nov 2032s launched in Feb and Nov respectively
• Those bonds were included on the official comps list sent this morning at i +127 and +159 bid, with bankers on the trade using those as the main building blocks to ascertain fair value for the latest greens. Adjusting the curve accordingly, one source was pitching the initial NICs at 35-40bps on each of the two issues

€€€ CTP N.V – Dual Tranche 6-year + 10-year - Comparables €€€

Indicative bid side levels (pre-announcement)

Ticker Ratings (M/S/F) Issue Date Coupon Size Maturity Tenor i-spread

CTPNV Baa3/BBB-/ - Jan-24 4.750% €824.78mm Feb-30 4.9 127

CTPNV Baa3/BBB-/ - Sep-21 1.500% €549mm Sep-31 6.6 141

CTPNV Baa3/BBB-/ - Nov-24 3.875% €500mm Nov-32 7.7 159

PHTREE - /BBB/ - Sep-24 4.000% €500mm Apr-32 7.1 154

LOGICOR - /BBB/ - Jan-21 0.875% €500mm Jan-31 5.9 138

LOGICOR - /BBB/ - Jan-22 2.000% €500mm Jan-34 8.9 152

Koninklijke Ahold Delhaize refreshes SLB curve with 8yr

** Dutch food retailer Koninklijke Ahold Delhaize N.V (Baa1/BBB+) mandated BofA Securities, Deutsche Bank, ING, J.P Morgan and Societe Generale as Joint Bookrunners for a EUR500m (exp) 8yr sustainability-linked bond benchmark

IPTs: Books open for EUR500m (exp) Mar 2033 SLB at m/s +130 area

• Expected issue ratings are Baa1 / BBB+ (Moody's / S&P)
• Proceeds from the bond are to be used for general corporate purposes including refinancing of existing indebtedness
• A Step-up event occurs if the Issuer fails to achieve one or more of the following SPTs:
  • SPT #1: -50% Scope 1&2 GHG emissions by YE30 vs. a YE18 baseline
  • SPT #2a: -30.3% absolute Scope 3 Forest, Land and Agriculture (‘FLAG’) GHG emissions by YE30 vs. a YE20 baseline OR #2b: -42% absolute Scope 3 Energy & Industry (‘E&I’) GHG emissions by YE30 vs. a YE20 baseline
  • SPT #3: -50% food waste by YE30 vs. a YE16 baseline
• Step-up margin of 50bps effective from the next interest period commencing in Mar 2031 (payable from Mar 2032 interest payment date)
• See the company’s Sustainability Linked Framework here
• Koninklijke Ahold Delhaize already has a couple of SLBs outstanding in the form of EUR600m Mar 2030s from 2021 and EUR700m Mar 2036s launched last year, with them spotted by leads at I +67 and +117 pre-announcement by leads
• Bankers both on and off the new deal were seeing fair value for the latest trade at m/s +95

€€€ Koninklijke Ahold Delhaize N.V. (Baa1/BBB+) - Indicative Pre-Announce Comps €€€

(Bid side vs I-Sprd)

Issuer Ratings (M/S&P) Size Coupon Maturity Tenor (yrs) Spread

ADNA Baa1/BBB+ €600mn 0.375% Mar-2030 5.0 +67 - SLB

ADNA Baa1/BBB+ €500mn 3.375% Mar-2031 6.0 +77 – Green

ADNA Baa1/BBB+ €700mn 3.875% Mar-2036 11.0 +117 – SLB

Fluvius & Kojamo mandate greens

** Flemish regulated electricity and gas distribution network operator Fluvius System Operator CV (Aa3) this morning hired Belfius, BNP Paribas, ING and KBC as Joint Bookrunners to arrange a series of fixed income investor calls Monday (3-Mar). A EUR 10yr green offering will follow

• The proceeds will be used to finance and/or refinance, in whole or in part, new or existing green projects from the Eligible Green Project Category as defined in the Green Financing Framework
• Fluvius has just the one euro green benchmark outstanding, EUR600m 0.25% Dec 2030s from 2020. Leads instead highlighted the company’s longest vanilla lines on the official comps list, along with the green bonds of other sector peers

Pre-announcement indicative secondary levels vs I-spread (bid)

Rating Coupon Maturity Tenor Size I-sprd ESG

FLUVIU A3/-/- 3.875 May-33 8.2y 700m +108

FLUVIU A3/-/- 3.875 May-34 9.2y 700m +112

ESBIRE A3/A-/- 1.000 Jul-34 9.4y 500m +95 Green

ESBIRE A3/A-/- 4.250 Mar-36 11y 500m +121 Green

STEDIN -/A-/- 3.375 Feb-37 11.9y 500m +106 Green

ELIATB BBB+/-/- 3.625 Jan-33 7.9y 500m +94 Green

ELIATB BBB+/-/- 3.750 Jan-36 10.9y 800m +118 Green

Finland's largest private residential real estate investment company Kojamo plc (Baa2) has mandated Goldman Sachs International, Nordea, OP, SEB and Swedbank as Joint Lead Managers to arrange a series of fixed income investor calls Monday and Tuesday (3-4 Mar). A EUR500m no grow 7yr green bond is to follow

• The net proceeds of the green bond will be used for eligible green projects in accordance with Kojamo's Green Finance Framework
• The notes are expected to be rated Baa2 by Moody's
• Kojamo has concurrently announced a tender offer for its outstanding EUR300m 2% green notes due March 2026 (ISIN: XS2463711643)
• This will mark the issuer’s first euro offering since launching the aforementioned sub-benchmark green in 2022

**** Kojamo (Baa2 Moody's) - EUR Comparables ****

Indicative bid side levels (pre-announcement)

Issuer Rating (M/S/F) Cpn (%) Amt. out (EURm) Maturity date Time to maturity (yrs) Green Spread (bps)

NORDICS

KOJAMO OYJ Baa2/-/- 1.875 500 May-27 2.2 N 97

KOJAMO OYJ Baa2/-/- 0.875 550 May-29 4.2 Green 126

BALDER FINLAND OYJ -/BBB/- 1.375 500 May-30 5.2 N 147

BALDER FINLAND OYJ -/BBB/- 2.000 500 Jan-31 5.9 N 152

FASTIGHETS AB BALDER -/BBB/- 4.000 500 Feb-32 7.0 N 167

CASTELLUM HELSINKI Baa3/BBB/- 0.875 650 Sep-29 4.5 N 121

CASTELLUM AB Baa3/BBB/- 4.125 500 Dec-30 5.8 N 144

SAGAX EURO MTN -/BBB-/BBB- 1.000 500 May-29 4.2 N 110

SAGAX AB -/BBB-/BBB- 4.375 500 May-30 5.2 Green 117

RESI

LEG IMMOBILIEN SE -/BBB-/BBB- 0.750 700 Jun-31 6.3 Sustainability 117

LEG IMMOBILIEN SE Baa2/-/- 1.000 500 Nov-32 7.7 N 134

LEG IMMOBILIEN SE Baa2/-/- 3.875 300 Jan-35 9.9 N 158

VONOVIA SE Baa2/-/- 0.625 1000 Dec-29 4.8 N 88

VONOVIA SE Baa2/-/- 5.000 750 Nov-30 5.7 Green 94

VONOVIA SE Baa2/-/- 2.375 787 Mar-32 7.1 Green 106

Harley-Davidson to add to reverse yankee haul

** US motorcycle manufacturer Harley-Davidson Financial Services Inc, a wholly owned subsidiary of Harley-Davidson Inc (Baa3/BBB-/BBB+), has appointed Goldman Sachs & Co. LLC, J.P Morgan, Lloyds Bank Corporate Markets and Wells Fargo Securities for a EUR 5yr benchmark. The deal will follow calls on Monday and Tuesday (3-4 Mar)

• The notes will be issued by Harley-Davidson Financial Services Inc
• Ahead of this trade reverse yankee corporate supply for the year stands at EUR19.15bn already, leaving us on course to beat 2024’s full-year haul of EUR61.02bn, with US companies flocking to euros to make the most of lower borrowing costs this side of the pond
• Harley-Davidson's only euro line is a EUR700m 5.125% ex-3yr maturing in 2026

Name Ticker Rating Issue Date CCY Size Coupon Maturity Tenor Bid Px I-Sprd Yld

HARLEY-DAVIDSON FINL SER HOG Baa3 / BBB- 05/04/2023 EUR 700 5.125 04-2026 1.1 102.220 62 2.842

FORD MOTOR CREDIT CO LLC F Ba1 / BBB- 24/11/2023 EUR 750 5.125 02-2029 4.0 105.162 154 3.700

FORD MOTOR CREDIT CO LLC F Ba1 / BBB- 14/02/2024 EUR 1000 4.445 02-2030 5.0 102.001 180 3.990

FORD MOTOR CREDIT CO LLC F Ba1 / BBB- 21/02/2025 EUR 750 4.066 08-2030 5.5 100.214 182 4.025

GENERAL MOTORS FINL CO GM Baa2 / BBB 15/02/2023 EUR 750 4.300 02-2029 4.0 103.900 104 3.190

GENERAL MOTORS FINL CO GM Baa2 / BBB 10/05/2024 EUR 750 4.000 07-2030 5.4 102.690 123 3.423

RCI BANQUE SA RENAUL Baa1 / BBB- 26/11/2024 EUR 600 3.375 07-2029 4.4 100.196 116 3.326

RCI BANQUE SA RENAUL Baa1 / BBB- 02/10/2023 EUR 750 4.875 10-2029 4.6 106.154 115 3.323

RCI BANQUE SA RENAUL Baa1 / BBB- 30/09/2024 EUR 800 3.875 09-2030 5.6 101.740 131 3.510

STELLANTIS NV STLA Baa1 / BBB+ 18/06/2021 EUR 1250 0.750 01-2029 3.9 91.174 105 3.209

STELLANTIS NV STLA Baa1 / BBB+ 14/03/2023 EUR 1250 4.375 03-2030 5.0 104.055 126 3.442

STELLANTIS NV STLA Baa1 / BBB+ 19/03/2024 EUR 750 3.500 09-2030 5.5 99.442 140 3.610

VOLVO CAR AB VOVCAB Ba1 / BB+ 08/05/2024 EUR 500 4.750 05-2030 5.2 103.406 179 3.976

NISSAN MOTOR CO NSANY Ba1 / BB+ 17/09/2020 EUR 750 3.201 09-2028 3.5 98.444 153 3.674

Affinity Water mandates GBP green alongside tender

** UK utility company Affinity Water Finance PLC (A3/BBB+/BBB+) this morning mandated Barclays, Lloyds and RBC Capital Markets as Active Bookrunners to arrange a series of fixed income investor calls on Monday and Tuesday (3-4 Mar). A GBP 15.5yr benchmark Class A senior secured green bond transaction may follow

• The bonds are expected to be rated A3 / BBB+ / BBB+ by Moody’s / S&P / Fitch respectively and will be guaranteed by Affinity Water Holdings Limited, Affinity Water Limited and Affinity Water Finance (2004) plc
• The issuance will be in line with the Affinity Water Green Finance Framework which is aligned to ICMA Green Bond Principles and has a Second Party Opinion from DNV
• A concurrent tender offer in respect of Affinity Water Finance (2004) plc's outstanding GBP250m 5.875% bonds due 2026 and launched in 2004(XS0195751523) has been also announced

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

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