CORP SNAPSHOT: Fingrid green keeps us ticking over

Its another measured session for European bond activity on Wednesday with just previously pipelined Fingrid Oyj out on the day in the corporate arena with a EUR500m no grow 5yr green bond issue, just its second ever in the format.

The slow pace comes after just one EUR500m deal got over the line on Tuesday to kick off the corporate week.

That was thanks to Sweden’s Heimstaden Bostad which backed up a Monday mandate with a EUR500m no grow PNC5.25 hybrid that was launched as part of a liability management exercise.

Funds generated from the bond are to be used for general corporate purposes and the any-and-all tender offer on the EUR800m 3.248% subordinated fixed to reset rate undated capital securities with a reset on 19-Feb-2025.

Despite the delicate backdrop, the latest trade saw strong demand which peaked at EUR3bn, although that fell considerably to EUR2.1bn after leads took pricing from 6.875-7% IPTs to a final 6.375%.

The new deal marked the company’s first hybrid since Oct 2021 when it issued EUR600m 3.625% non-call Jan 2027s into a much more measured book of EUR950m.

In secondary this morning and Heimstaden’s latest trade was trading at around i +411 versus the reoffer spread of m/s +418.9.

Fingrid creates green curve with 5s

** Majority state-owned Finnish national electricity transmission grid operator Fingrid Oyj (A+/A+) mandated BNP Paribas, Danske Bank, OP Corporate Bank, and SEB as Joint Lead Managers to arrange a series of fixed income investor calls today (26-Nov). A EUR500m no grow 5yr senior unsecured green bond offering is now out

IPTs: Books open for EUR500m no grow Dec 2029 green at m/s +95-100

• Expected issue ratings are A+ and AA- by S&P and Fitch
• The transaction is being launched under the issuer's EMTN programme dated 4-Mar-2024, supplemented 13-Sep-2024
• The net proceeds of the issue will be used in accordance with the issuer's Green Finance Framework to finance and or refinance Eligible Projects
• This new deal comes after Fingrid issued a debut green line in Mar, which came in the form of a EUR500m 10yr (3.25% Mar 2034s) which were 4.6x covered at the m/s +73 reoffer
• Leads highlighted the debut green on the official comps list sent Tuesday along with the curves of peers Enexis and Statnett.
• At first glance, we saw fair value for the new 5yr green Fingrid at m/s +55/60, with one banker close to the trade saying they saw it nearer the wide-end of that

*** FINGRID COMPS ***

(indicative pre-announcement bid side indications vs i-spread)

Ticker Ratings Coupon Amount Maturity Term I sprd Issue Date

Issuer

FINPOW -/A+/AA- 3.250% 500 20-Mar-34 9.3yr +89 20-Mar-24

Other sector comps

STATNE A2/A+/- 1.250% 500 26-Apr-30 5.4yr +66 27-Oct-17

STATNE -/A+/- 3.500% 500 08-Jun-33 8.5yr +94 08-Jun-23

STATNE -/A+/- 3.375% 500 26-Feb-36 11.2yr +104 26-Feb-24

ENEXIS Aa3/-/- 0.625% 500 17-Jun-32 7.6yr +73 17-Jun-20

ENEXIS -/AA-/- 0.375% 500 14-Apr-33 8.4yr +83 14-Apr-21

ENEXIS Aa3/NR/- 3.625% 500 12-Jun-34 9.5yr +93 12-Jun-23

ENEXIS Aa3/NR/- 3.500% 500 30-May-36 11.5yr +98 30-May-36

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

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