CORP SNAPSHOT: Enexis sneaks in a two-part ahead of Trump

The main focus for financial markets on Wednesday is of course President Trump's upcoming tariff announcement, but with that not scheduled until after the European close, Enexis Holdings has decided to jump into the primary bond market.

Following what we heard was a fairly lengthy go/no-go call this morning, the Dutch electricity and gas network operator has decided to go with a EUR1bn 8yr/12yr two-part green issue, aiming to preempt any potential turbulence that could ensue following Trump’s “Liberation Day.”

Enexis comes after a mini-flurry on Tuesday which saw three IG-rated corporate names launch euro trades and make the most of what was a recently rare risk-on tone.

That came in the form of Danone (EUR800m from bmk 8yr) and Proximus SA de droit public (EUR750m from bmk 10yr) which took an opportunistic approach, whilst Fresenius Medical Care AG (EUR600m Dec 2028 / EUR500m Apr 2032 two-part) went live after calls.

Investors were enthusiastic about the latest deals, perhaps with the thought that other options this week may be slim, given the uncertainty surrounding tariffs and their potential impact on broader market conditions.

Seeing the largest single peak book on the day was Danone at EUR4.5bn, although that dropped considerably to EUR2.7bn after leads cut 39.5bps from the mid-point of IPTs to print with a NIC of just 2bps.

Fresenius’ relatively rare bonds also saw plenty of demand which topped out at EUR7.2bn and saw final orders hold up well at EUR7.05bn following spread compressions of 39.5bps on the short 4yr and 32bps on the 7yr.

Proximus saw more measured investor interest of EUR1.6bn (EUR1.8bn peak) which resulted in a smaller move of 25bps from IPTs to reoffer and saw the deal price with a 15bp NIC.

Also out on Tuesday was Citycon (EUR450m from exp EUR350m 6.25yr green) which is BB+ rated at the issuer level, but the notes carried an expected IG rating of BBB-.

The sub-benchmark issue landed at m/s +315 (15bp NIC) from a m/s +350-360 starting point having attracted a bumper EUR2.1bn final book versus a EUR2.2bn peak.

Back to Wednesday’s activity and another Aussie name has joined the pipeline today in the form of toll road developer and operator Transurban Group which is to conduct a three-day roadshow starting Thursday ahead of a EUR 10yr secured benchmark and a debut GBP 15yr secured benchmark.

Compatriot AusNet starts its own roadshow today ahead of a EUR 10yr senior unsecured benchmark, whilst another Aussie issuer in the form of Woolworths Group wraps up meetings today for a EUR 7.5yr unsecured benchmark which, per the update this morning, could come as early as tomorrow.

Whether or not that deal - or Japan Tobacco’s EUR Jun 2035s which also finishes a roadshow on Wednesday - emerges tomorrow is yet to be seen, with it likely to largely depend on the fallout from Trump’s musings this evening.

Enexis sticks with greens

** Dutch electricity and gas network operator Enexis Holding N.V (Aa3/AA-) is out with an opportunistic EUR1bn no grow two-part 8yr/12yr green trade via Active Bookrunners ABN AMRO, BNP Paribas, ING, NatWest, Rabobank and SEB

IPTs:

EUR500m no grow Apr 2033 green at m/s +120 area

EUR500m no grow Apr 2037 green at m/s +140 area

• Expected issue rating is Aa3 (Moody’s)
• Proceeds from the transaction are to be used for eligible green assets as per Enexis’ Green Finance Framework
• Enexis tapped the market once in May 2024, raising EUR500m via a 3.5% May 2036 green trade at m/s +75 into a 3.7x covered book. Leads highlighted that on the official comps list sent Wednesday morning at i +94 bid
• Adjusting the issuer’s existing green curve, bankers on the trade we're seeing fair value for the 8yr in the m/s +low 80s and in the +low 100s on the 12yr

ISSUER M/S/F SIZE CPN MTY Tenor I-SPRD

ENEXIS -/AA- 500 MM 0.375% Apr-33 8.0 82

ENEXIS Aa3/- 500 MM 3.625% Jun-34 9.2 87

ENEXIS -/AA- 500 MM 3.500% May-36 11.1 94

Other high-rated utils

ALLRNV A1/- 750 MM 3.000% Oct-34 9.5 91

FINPOW -/A+ 500 MM 3.250% Mar-34 8.9 84

STATNE -/A+ 500 MM 3.375% Feb-36 10.8 94

STATK -/A 500 MM 3.375% Mar-32 6.9 82

STATK -/A 500 MM 3.500% Jun-33 8.2 87

STATK -/A 500 MM 3.750% Mar-39 13.9 104

** Indicative i-spread Pre-Announcement Bid-Side Levels **

Transurban Group latest Aussie to announce European plans

** Aussie toll road developer and operator Transurban Group (Baa1/BBB+) hired BNP Paribas, BofA Securities and Goldman Sachs International to organise a series of fixed income investor meetings and calls in Asia, the UK and Europe from Thursday to Monday (3-7 Apr). A EUR 10yr benchmark and a debut GBP 15yr benchmark senior secured transaction is to follow

• A Deal Roadshow presentation will be available here
• The notes are expected to be rated Baa1 / A- by Moody’s / Fitch
• Transurban last visited the EUR market in Mar 2024 via a two-part offering comprising EUR500m 3.713% Mar 2032 and EUR500m 3.974% Mar 2036 lines. Those lines priced at m/s +110 and m/s +135 on the back of EUR2.2bn and EUR2.3bn of orders at reoffer. That was sufficient for the issuer to lock in funding at NICs of 5bps on both tranches
• Both the Mar 2024 issued lines were included on the comprehensive comps list sent this morning as follows:

** EUR **

Issuer Rating Size Coupon Maturity Tenor Spread

TCLAU Baa1/BBB+ €750m 3.000% Apr-30 5.0 MS+98

TCLAU Baa1/BBB+ €500m 3.713% Mar-32 6.9 MS+118

TCLAU Baa1/BBB+ €650m 4.225% Apr-33 8.1 MS+129

TCLAU Baa1/BBB+ €500m 3.974% Mar-36 10.9 MS+138

EJRAIL A1/A+ €600m 3.976% Sep-32 7.4 MS+83

EJRAIL A1/A+ €700m 3.533% Sep-36 11.4 MS+106

DGFP A3/A- €825m 3.375% Oct-32 7.5 MS+85

SYDAU Baa1/BBB+ €500m 3.750% Apr-32 7.1 MS+115

SYDAU Baa1/BBB+ €500m 4.125% Apr-36 11.1 MS+140

MELAIR Baa1/BBB+ €650m 4.000% Jun-34 9.2 MS+133

MAGAIR Baa1/- €500m 4.000% Mar-35 10.0 MS+133

HTHROW -/BBB+ €600m 3.875% Jan-36 10.8 MS+150

GATAIR Baa2/BBB+ €750m 3.625% Oct-33 8.5 MS+127

** GBP **

Issuer Rating Size Coupon Maturity Tenor Spread

EJRAIL A1/A+ £250m 4.500% Jan-36 10.8 G+73

DGFP A3/A- £400m 2.750% Sep-34 9.5 G+63

MAGAIR Baa1/- £360m 6.125% Sep-41 15.5 G+115

MAGAIR Baa1/- £300m 5.750% Sep-42 16.5 G+120

HTHROW -/BBB+ £750m 5.875% May-41 16.1 G+122

BAZFIN Baa1/- £300m 2.750% Mar-34 8.9 G+115

GATAIR Baa2/BBB+ £250m 5.500% Apr-40 15.0 G+118

Already in the pipeline

** Australian retail giant Woolworths Group Limited (Baa2/BBB) has mandated BNP Paribas, Citigroup, Goldman Sachs, HSBC and ING as Joint Bookrunners to arrange a series of European fixed income investor meetings 31-Mar until 2-Apr. A EUR benchmark 7.5yr senior unsecured offering may follow

** Japan Tobacco Inc (A2/A+) mandated Citigroup and J.P. Morgan as Global Coordinators, and BofA Securities, Citigroup, Deutsche Bank, J.P. Morgan, Mizuho, MUFG, SMBC Nikko, Standard Chartered Bank as Joint Active Bookrunners to arrange a series of virtual and physical fixed income investor calls/meetings to take place on 31-Mar until 2-Apr. A USD multi-tranche benchmark 144A/Reg S senior unsecured across May 2028, Jun 2030, and Jun 2035 tenors from Japan Tobacco Inc, as well as a EUR benchmark Jun 2035 senior unsecured notes offering from JT International Financial Services B.V, fully guaranteed by Japan Tobacco Inc, may follow

** Australian diversified energy infrastructure business AusNet Services Holding Pty Limited (Baa1/BBB+) mandated BNP Paribas, Citigroup, ING and SMBC to arrange a series of fixed income investor meetings and calls commencing 2-4 Apr. A EUR 10yr benchmark senior unsecured transaction may follow

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

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