CORP SNAPSHOT: EUR and GBP paper on the menu again

European equities are on the up this morning with investors taking comfort from US President Trump comments that he doesn’t see a US economic recession, whilst geopolitical news has also been supportive with Ukraine accepting an immediate 30-day ceasefire with Russia, as proposed by the US.

Whether those gains will last remains to be seen given that US growth worries, tariff uncertainty and political concerns remain live, but the positive backdrop this morning has been enough for another four IG corporates to go live with bond offerings.

Coming out the pipeline today we have SIG Group (exp EUR500m 5yr), Manchester Airport (debut EUR500m no grow 10yr) and Wessex Water (GBP 9.5yr & 15.5yr sustainability dual-tranche), whilst Legrand is adding an opportunistic EUR500m no grow 10yr into the mix.

Manchester Airport and Wessex Water come after UK borrowers had a monopoly on the IG corporate market Tuesday.

That saw SSE (EUR600m from exp 500m 7yr green) take an opportunistic approach, whilst Mondi (EUR600m from exp 500m long 8yr) and Bunzl (in line with exp GBP500m 6yr & 11yr two-part) emerged after calls on Monday.

Standing out on the demand front was utility company SSA whose latest green peaked at EUR3.25bn, allowing the company to ramp in pricing 37bps from IPTs and issue 2bps inside fair value valuations.

That tight pricing came at the expense of a chunk of orders though, with books falling considerably to EUR1.65bn at the final count.

Packaging company Mondi also saw some attrition in the book, with peak orders of EUR1.9bn dropping to EUR1.55bn having gone from m/s +150 area IPTs to a +120 reoffer (5bp NIC).

Offering a sterling option Tuesday was distributor Bunzl via its first GBP trade since 2020, with combined demand for the GBP250m 6yr and GBP250m 11yr lines finishing at GBP1.535bn.

SIG returns to euros ahead of upcoming maturity

** Swiss provider of innovative and versatile packaging solutions SIG Group AG (Baa3/BBB-) mandated BNP PARIBAS and BofA Securities as Global Coordinators and together with Credit Agricole CIB, Rabobank, UBS and UniCredit as Joint Bookrunners, to arrange a series of fixed income investor calls 10-11 Mar. A EUR 5yr benchmark senior unsecured bond offering is now live

IPTs: Books open for EUR500m (exp) Mar 2030s at m/s +155-160

• The bonds are being issued through SIG Combibloc PurchaseCo S.a r.l
• Expected issue ratings Baa3/BBB- by Moody's/S&P
• Proceeds from the bond are to be used for general corporate purposes and the refinancing of existing indebtedness
• Deal follows two-days of calls where SIG engaged with over 90 investors across the calls and netroadshow
• SIG has just the one outstanding euro fixed-rate benchmark outstanding in the form of a EUR550m 2.125% ex-5yr which matures in Jun this year
• Leads instead highlighted the curves of similar-rated corporate peers as comparables, detailed below

€€€ Pre-Announce Comps €€€

(Bid side vs I-Sprd)

Ticker Issuer Ratings Outlooks Coupon Maturity Tenor I-Sprd Yield

Paper & Packaging

AMCR Amcor Baa2/BBB NW/Stab 3.950 May-32 7.2 130 3.90

SW Smurfit Kappa Baa2/BBB Pos/Stab 0.500 Sep-29 4.5 72 3.23

SW Smurfit Kappa Baa2/BBB Pos/Stab 3.454 Nov-32 7.7 105 3.69

STERV Stora Enso Baa3/- Stab/- 4.250 Sep-29 4.5 109 3.58

STERV Stora Enso Baa3/- Stab/- 0.625 Dec-30 5.7 112 3.69

HUHTAM Huhtamaki -/BB+ -/Pos 5.125 Nov-28 3.7 109 3.52

CCK Crown Holdings Ba1/BB+ Stab/Stab 4.750 Mar-29 4.0 122 3.67

CCK Crown Holdings Ba1/BB+ Stab/Stab 4.500 Jan-30 4.8 135 3.87

Selected/Recent Low BBB-

JDEPNA JDE Peets Baa3/BBB- Stab/Stab 4.125 Jan-30 4.8 109 3.61

ELISGP Elis NR/BBB- Stab/Stab 3.750 Mar-30 5.0 105 3.58

NK Imerys Baa3/BBB- Stab/Stab 4.750 Nov-29 4.7 109 3.59

PVH PVH Baa3/BBB- Pos/Pos 4.125 Jul-29 4.3 130 3.80

TORNAT Tornator Baa3/- Stab/- 3.750 Oct-31 6.6 114 3.74

IMCDNA IMCD Baa3/- Stab/- 3.625 Apr-30 5.1 117 3.71

ACFP Accor -/BBB- -/Stab 3.500 Mar-33 8.0 125 3.89

CRTING El Corte Ingles -/BBB- -/Stab 4.250 Jun-31 6.2 123 3.81

Manchester Airport Group makes euro debut

** UK name Manchester Airport Group Funding Limited (Baa1/BBB+) hired Barclays, BNP Paribas, NatWest and SMBC as Active Bookrunners to arrange a series of fixed income investor calls commencing 10-Mar. A debut EUR500m 10yr secured transaction is now live

IPTs: Books open for EUR500m no grow Mar 2035 secured at m/s +170-175

• The notes are being issued via Manchester Airport Group Funding PLC
• Bonds are expected to be rated Baa1 by Moody’s and BBB+ by Fitch
• The net proceeds will be lent by the issuer to the borrower who will apply proceeds for general corporate purposes and payment of fees associated with the issuance
• Manchester Airport Group has a number of sterling lines outstanding but with nothing in euros, investors instead will be likely looking at the curves of sector peers such as Heathrow (BBB+/A-) which has EUR650m 1.875% Mar 2034 vanilla and EUR600m 3.875% Jan 2036 SLB trades outstanding. Those were bid at i +115 and +138 bid respectively on screens when the initial mandate was announced on Monday, with an interpolation pointing to fair value for a Mar 2035 Heathrow line at around m/s +130

Legrand extends with another 10yr

** French industrial group Legrand SA (A-) is out with an opportunistic EUR500m no grow 10yr line via Global Coordinators Goldman Sachs Bank Europe SE and Societe Generale, alongside Active Bookrunners BNP Paribas, CIC, HSBC and J.P Morgan. Passive Bookrunners are Credit Agricole CIB and Natixis

IPTs: Books open for EUR500m no grow Mar 2035s at m/s +130-135

• The expected rating of the bonds is A- by S&P
• Funds generated from the issue are being earmarked for general corporate purposes
• Legrand’s curve currently extends to an ex-10yr line, namely EUR600m 3.5% Jun 2034s launched last year at m/s +83 from +115 area IPTs on the back of demand that settled at EUR3.3bn
• That line has since widened in secondary, spotted by leads at i +95 bid ahead of the latest trade. Equating for the additional tenor to the Mar 2025 maturity, we saw fair value somewhere around the m/s +100 area which bankers close to the trade said they broadly agreed with

€€€ Legrand EUR 500mm (No Grow) 10yr - Comps €€€

** Pre-announcement indicative bid-side levels **

TICKER RATING COUPON MATURITY I-SPREAD

LRFP - / A- / - 0.750% May-2030 +68

LRFP - / A- / - 0.375% Oct-2031 +74

LRFP - / A- / - 1.875% Jul-2032 +45

LRFP - / A- / - 3.500% Jun-2034 +95

Recently Issued Sector Comps:

ABBNVX A2/ A / - 3.375% Jan-2034 +77

SUFP - / A / - 3.250% Oct-2035 +91

SUFP - / A / - 3.375$ Sep-2036 +89

Wessex Water offers sustainability sterling paper

** UK utility Wessex Water Services Finance Plc (Baa1/BBB+) mandated Barclays as Sole Sustainability Structuring Coordinator and Barclays, HSBC and NatWest as Active Bookrunners to arrange a series of fixed income investor calls and physical meetings 10-11 Mar. A GBP benchmark sustainability dual-tranche 9.5yr and 15.5yr transaction has gone live Wednesday

IPTs:

GBP Sep 2034 benchmark at mid gilts (UKT 4.5% Sep 2034) +180-185

GBP Sep 2040 benchmark at mid gilts (UKT 4.375% Jan 2040) +175 area

• Marketing concluded Tuesday with over 65 investors engaged
• The bonds are being issued by Wessex Water Services Finance Plc and are guaranteed by Wessex Water Services Finance Limited
• Expected to be rated Baa1 by Moody’s and BBB+ by Fitch
• Net proceeds will be used to finance and/or refinance, in whole or in part, Eligible Sustainable Projects in accordance with the group’s Sustainable Finance Framework
• Wessex Water has one GBP sustainability line outstanding in the form of a GBP300m 5.125% Oct 2032 bond launched in Mar 2023 at gilts +205 on demand which finished up at GBP900m
• The existing sustainability bond was spotted by leads at gilts +153 on the official comps list sent earlier this week

Pre-announcement indicative secondary levels vs UK Gilts (bid):

Issuer Rating Coupon Size Issue Dt. Maturity Years to Mat UKT+

WESSEX WATER SERVS FIN Baa1 / NR / BBB+ 1.500% £250m Sep-19 Sep-29 4.5 +121

WESSEX WATER SERVS FIN Baa1 / - / BBB+ 5.125% £300m Mar-23 Oct-32 7.6 +152

WESSEX WATER SERVS FIN Baa1 / NR / BBB+ 5.750% £350m Oct-03 Oct-33 8.6 +152

WESSEX WATER SERVS FIN Baa1 / - / BBB+ 1.250% £300m Jan-21 Jan-36 10.8 +129

The British Land Company readies liability management exercise

** UK REIT The British Land Company PLC (A) has mandated Lloyds Bank, NatWest, Santander and SMBC as Active Bookrunners to arrange a series of fixed income investor calls commencing on Wednesday (12-Mar). A GBP 7yr senior unsecured benchmark offering is expected to follow

• The notes are expected to be rated A by Fitch
• British Land Company has concurrently mandated Lloyds Bank and NatWest as Dealer Managers on a capped tender offer on its GBP310m (GBP217.6m o/s) 5.357% debentures due Mar 2028 (ISIN: XS0263450909 / GB00B19ZPK76) and GBP330m 5.264% debentures due Sep 2035 (ISIN: XS0263451972 / GB00B19ZSN13).
• The net proceeds of the new notes will be used for general corporate purposes including financing the tender offer

Already in the pipeline:

** Galderma Group AG (BBB), the diversified pure-play dermatology category leader mandated BNP Paribas, J.P Morgan, Mizuho and Santander as Active Bookrunners, to arrange a series of fixed income investor calls 11-12 Mar. A debut EUR 5yr benchmark bond offering is expected to follow

** Finnish producer of sustainable aviation fuel and renewable diesel Neste Oyj (A3), mandated BNP Paribas, Danske Bank, ING, Nordea and UniCredit as Joint Bookrunners to arrange a series of fixed income investor calls 11-12 Mar. A EUR500m (exp) 5yr green bond offering is expected to follow

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

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