CORP SNAPSHOT: EnBW gets us underway for the week
IG corporate supply is limited at the start of the new week with just one borrower live, namely German utility EnBW Energie Baden-Wuerttemberg AG (Baa1/A-).
The borrower is kicking off a week that is expected, on average, to yield EUR3bn of euro IG corporate supply with an expected EUR1bn two-part 7/12yr green which will make a good dent in that total.
Through its Dutch arm EnBW International Finance B.V, the company has opened books and released IPTs for green Jul 2031s and Jul 2036s at m/s +110 area and +145 area respectively.
Global Coordinators are Barclays, BNP Paribas and ING, with Commerzbank, Credit Agricole CIB, DZ Bank and LBBW as Joint Bookrunners.
The intention is to apply an amount equivalent to the proceeds to finance Eligible Green Projects as defined in the issuer's Green Financing Framework.
EnBW already has a fairly well-stocked euro curve which leads spotted as follows pre-announcement:
Ticker Issuer Rating Sustainable Feature Coupon (%) Maturity Amount ( mn) I Spread
ENBW ENBW Baa1 / A- Green 4.049 11/15/2029 500 56
ENBW ENBW Baa1 / A- Green 3.85 05/23/2030 650 63
ENBW ENBW Baa1 / A- - 0.25 10/19/2030 500 60
ENBW ENBW Baa1 / A- - 0.5 03/01/2033 500 85
ENBW ENBW Baa1 / A- Green 4.3 05/23/2034 850 102
ENBW ENBW Baa1 / A- - 4 01/24/2035 750 104
RWE RWE A Aa1 / AA- - 3.625 02/13/2029 500 28
RWE RWE A Baa2 / NR Green 2.75 05/24/2030 1,000 76
RWE RWE A Baa2 / NR Green 0.625 06/11/2031 500 80
RWE RWE A Baa2 / NR Green 3.625 01/10/2032 500 92
RWE RWE A Baa2 / NR Green 1 11/26/2033 600 105
RWE RWE A Baa2 / NR Green 4.125 02/13/2035 500 107
EOANGR E.ON SE Baa2 / BBB+ Green 3.75 03/01/2029 750 45
EOANGR E.ON SE Baa2 / BBB+ Green 3.375 01/15/2031 750 69
EOANGR E.ON SE Baa2 / BBB+ Green 1.625 03/29/2031 750 59
EOANGR E.ON SE Baa2 / BBB+ Green 0.875 08/20/2031 500 64
EOANGR E.ON SE Baa2 / BBB+ - 3.5 03/25/2032 800 85
EOANGR E.ON SE Baa2 / BBB+ Green 4 08/29/2033 750 86
EOANGR E.ON SE Baa2 / BBB+ Green 0.875 10/18/2034 800 62
EOANGR E.ON SE Baa2 / BBB+ Green 3.875 01/12/2035 1,000 99
EOANGR E.ON SE Baa2 / BBB+ Green 3.75 01/15/2036 750 101
EOANGR E.ON SE Baa2 / BBB+ Green 4.125 03/25/2044 1,000 138
Referencing the comps as a whole, bankers running the trade were seeing fair value for the 7yr in the m/s +low 70s and at +110 area on the 12yr.
EnBW comes after we saw eight issuers emerge last week, all of which came in the first half ahead of the key US CPI data.
The octet raised a total of EUR5.2bn which marked a big uptick from the previous week's year-to-date low of EUR800m and was the sector's biggest volume week in a month.
That was also more than the average estimate (EUR4bn) and the highest guess (EUR5bn) given by participants in our weekly issuance poll conducted the prior Friday. Last week's borrowers found plenty of buyers with the corporate credit market continuing to do a good job of rapidly repricing and moving on from certain risk events, and with investors seeing it as a relatively safe/attractive place to park cash. Combined demand for the EUR5.2bn on offer last week finished up at EUR21.3bn to give a final average cover ratio of 4.38x.
For a full recap see the IGM CORP WEEKLY.
Summary of last week's EUR IG/split-rated corporate trades:
| Date | Issuer | Size (EUR m) | Maturity | IPTs | Re-offer | IPT to Re-offer Pricing Differential (bp) | NIC (bp) | Books (EUR m) | Final Cover Ratio (X) | Peak Books (EUR m) |
| 08-Jul | Leasys S.p.A. | 500 | 12-Oct-27 | m/s+125-130 | m/s+90 | -37.5 | 0 | 3300 | 6.60 | 3300 |
| 08-Jul | Toyota Motor Credit Corporation | 1,000 | 15-Jul-31 | m/s+115-120 | m/s+85 | -32.5 | 5 | 3400 | 3.40 | 3500 |
| 08-Jul | Eesti Energia AS (Green, Hybrid) | 400 | PNC5.25 | 8.5%a | 8% | -50 | N/A | 1600 | 4.00 | 1600 |
| 09-Jul | John Deere Capital Corporation | 900 | 16-Jun-32 | m/s+100a | m/s+68 | -32 | 8 | 1900 | 2.11 | 2500 |
| 09-Jul | Iberdrola Finanzas S.A.U (Green) | 750 | 18-Jul-34 | m/s+120a | m/s+83 | -37 | 0 | 2200 | 2.93 | 4000 |
| 09-Jul | Aroundtown SA | 650 | 16-Jul-29 | m/s+290a | m/s+245 | -45 | -2.5 | 3850 | 5.92 | 4400 |
| 10-Jul | Silfin NV | 500 | 17-Jul-30 | m/s+275a | m/s+240 | -35 | N/A | 2850 | 5.70 | 2850 |
| 10-Jul | Logicor Financing S.à r.l. | 500 | 18-Jul-29 | m/s+190a | m/s+153 | -37 | 0 | 2200 | 4.40 | 2800 |
Performance tracker of recent EUR IG/split-rated benchmark deals
| Issuer | Deal | Re-offer spread (m/s) | Current i-spread (bid) | Issue Rating |
| SCRSBE | 5.125% 07/30 | +240 | +224.5 | BBB- |
| LOGICR | 4.250% 07/29 | +153 | +147 | BBB |
| DE | 3.450% 07/32 | +68 | +67 | A1/A/A+ |
| IBESM | 3.625% 07/34 | +83 | +83.5 | Baa1/BBB+/A- |
| ARNDTN | 4.800% 07/29 | +245 | +234 | BBB+ |
| LEASYS | 3.875% 10/27 | +90 | +81 | A- |
| TOYOTA | 3.625% 07/31 | +85 | +82 | A1/A+/A+ |
| GYCGR | 4.375% 01/30 | +195 | +177 | BBB+ |
| REESM | 3.375% 07/32 | +67 | +76 | BBB+/BBB+ |
| ERGIM | 4.125% 07/30 | +140 | +126 | BBB- |
| PCIM | 3.875% 07/29 | +115 | +95 | BBB-/BBB- |
| DSFIR | 3.625% 07/34 | +95 | +84.5 | A3/A- |
| DE | 3.300% 10/29 | +55 | +58.5 | A1/A/A+ |
| HEIANA | 3.812% 07/36 | +103 | +99.5 | A3/BBB+ |
| IWGLN | 6.500% 06/30 | +387.5 | +332.5 | BBB |
| ALLRNV | 4.500% PNC8 | +185.1 | +167 | A3/BBB+ |
| DCCLN | 4.375% 06/31 | +165 | +168.5 | BBB/BBB |
| DSVDC | 3.500% 06/29 | +80 | +72 | A3/A- |
| CRTING | 4.250% 06/31 | +155 | +128.5 | BBB-/BBB- |
| LRFP | 3.500% 06/34 | +83 | +76.5 | A- |
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