CORP SNAPSHOT: Hammerson sterling return the only primary highlight

IG corporate supply is being limited to a single sterling trade from UK real estate company Hammerson plc on Wednesday, with ongoing Middle East tensions keeping a lid on primary activity on the whole.

That comes after just two previously pipelined names were out in the corporate arena Tuesday and kicked off activity for the new month and quarter, in the form of FCC Servicios Medio Ambiente Holding (EUR600m, from exp EUR500m 7yr green) and Adecco Group (EUR300m no grow 8yr).

Both trades extended the respective issuer’s curves and found solid support from investors although demand was more measured than for Monday’s pair of trades from Romgaz and Allinader.

Adecco’s sub-benchmark 8yr landed 25bps inside IPTs (final 15bp NIC) on demand last touted at EUR900m, whilst FCC saw a bigger EUR2.1bn book for its latest green that priced with a 10bp NIC after a 29.5bp spread compression.

Tuesday’s trades put the weekly euro corporate (excluding HY) supply total at EUR2.15bn, well short of the average weekly estimate of EUR5.5bn.

Given Thursday is a German holiday and there is headline data in the form of US payrolls on Friday, we may not see any more euro supply at all this week.

Hammerson ends nine-year sterling hiatus

** Hammerson plc (Baa2/BBB+), UK based owner and operator of unique City Centre property portfolio in fastest growing cities in UK, Ireland and France, mandated Barclays, BNP Paribas, Lloyds and Mizuho as Active Bookrunners to arrange a series of fixed income investor calls commencing 30-Sep & 1-Oct. A GBP 12yr benchmark senior unsecured notes offering is now live

IPTs: Books open for Oct 2036s at mid-gilts (UKT 4.25% 2036s) +215 area

• Concurrently, Hammerson is conducting a capped tender offer for its outstanding GBP 3.5% October 2025 (XS1311391012), 6% February 2026 (XS0184639895) and 7.25% April 2028 (XS0085732716) notes
• Hammerson issued a EUR700m 1.75% Jun 2027 line in May 2021, but hasn’t issued sterling since back in 2015 when it printed GBP350m 3.5% Oct 2025s which is one of the bonds now subject to a tender offer

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

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