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CORP SNAPSHOT: Quartet forge ahead as stocks bounce back

European equities are recovering some of the huge losses seen on Tuesday after Trump went through with imposing taxes on Canada, Mexico and China, with retaliatory measures then announced.

That saw the Stoxx600 close 2.14% lower yesterday, but the index is up as much as 1.5% this morning after comments from US Commerce Secretary Howard Lutnick that there could be room for some tariff relief on Mexican and Canadian goods.

The better tone has tempted another batch of IG corporate names to forge ahead with offerings having reached out to investors via calls earlier in the week.

In the euro market we have Var Energi (EUR 6yr), Kojamo plc (EUR500m no grow 7yr green) and Harley-Davidson Inc (EUR 5yr), whilst Affinity Water Finance PLC (GBP 15.5yr secured green) is out in sterling.

As a reminder, two corporate issuers managed to get deals away on Tuesday despite the huge sell-off in global equities , although both saw some attrition in the orderbooks amid the tone and fairly tight pricing levels.

Emerging after calls the previous session we had Utility company Fluvius System Operator pull the trigger on a EUR700m (from benchmark) 10yr green, whilst low-beta healthcare company Sanofi offered EUR850m 2yr floating and EUR650m 6yr fixed trades in what was its first offering in three years.

Starting with the former and the company’s first green bond in five years saw peak demand of EUR2.8bn, allowing Fluvius to take pricing from +155 area IPTs to a +120 reoffer.

That resulted in a final NIC in the low-single digits, which was too small for some with orders dropping to a final EUR1.7bn.

French name Sanofi also saw some sensitivity in the books, with combined orders finishing up at EUR5.25bn from a EUR6.75bn peak.

The 6yr fixed rate tranche saw EUR2.55bn (EUR3.75bn peak) of that and priced 2bps inside fair value valuations. The 2yr marked just the second euro IG corporate floating-rate note of 2025 following a EUR850m Feb 2027 from Carlsberg Breweries last month, with demand on Sanofi's FRN settling at EUR2.9bn.


Kojamo offers green option

** Finland's largest private residential real estate investment company Kojamo plc (Baa2) mandated Goldman Sachs International, Nordea, OP, SEB and Swedbank as Joint Lead Managers to arrange a series of fixed income investor calls 3-4 Mar. A EUR500m no grow 7yr green bond is now out

IPTs: Books open for EUR500m no grow Mar 2032 green at m/s +200 area

  • The notes are expected to be rated Baa2 by Moody's
  • Net proceeds of the green bond will be used for eligible green projects in accordance with Kojamo's Green Finance Framework
  • Included are the following financial covenants:
    • Solvency Ratio ≤ 65% (incurrence based)
    • Secured Solvency Ratio ≤ 45% (incurrence based)
    • Coverage Ratio ≥ 1.8x (maintenance based)
  • Kojamo also announced a tender offer for its outstanding EUR300m 2% green notes due March 2026 (ISIN: XS2463711643)
  • This marks the issuer’s first euro offering since launching the aforementioned sub-benchmark green in 2022, which makes ascertaining fair value for the new 7yr green fairly tricky. However, bankers running the trade highlighted the bonds of other sector peers as comparables

**** Kojamo (Baa2 Moody's) - EUR Comparables ****

Indicative bid side levels (pre-announcement)

Issuer Rating (M/S/F) Cpn (%) Amt. out (EURm) Maturity date Time to maturity (yrs) Green Spread (bps)

NORDICS

KOJAMO OYJ Baa2/-/- 1.875 500 May-27 2.2 N 97

KOJAMO OYJ Baa2/-/- 0.875 550 May-29 4.2 Green 126

BALDER FINLAND OYJ -/BBB/- 1.375 500 May-30 5.2 N 147

BALDER FINLAND OYJ -/BBB/- 2.000 500 Jan-31 5.9 N 152

FASTIGHETS AB BALDER -/BBB/- 4.000 500 Feb-32 7.0 N 167

CASTELLUM HELSINKI Baa3/BBB/- 0.875 650 Sep-29 4.5 N 121

CASTELLUM AB Baa3/BBB/- 4.125 500 Dec-30 5.8 N 144

SAGAX EURO MTN -/BBB-/BBB- 1.000 500 May-29 4.2 N 110

SAGAX AB -/BBB-/BBB- 4.375 500 May-30 5.2 Green 117

RESI

LEG IMMOBILIEN SE -/BBB-/BBB- 0.750 700 Jun-31 6.3 Sustainability 117

LEG IMMOBILIEN SE Baa2/-/- 1.000 500 Nov-32 7.7 N 134

LEG IMMOBILIEN SE Baa2/-/- 3.875 300 Jan-35 9.9 N 158

VONOVIA SE Baa2/-/- 0.625 1000 Dec-29 4.8 N 88

VONOVIA SE Baa2/-/- 5.000 750 Nov-30 5.7 Green 94

VONOVIA SE Baa2/-/- 2.375 787 Mar-32 7.1 Green 106


Harley-Davidson latest US issuer to cross The Atlantic

** US motorcycle manufacturer Harley-Davidson Financial Services Inc, a wholly owned subsidiary of Harley-Davidson Inc (Baa3/BBB-/BBB+), appointed Goldman Sachs & Co LLC, J.P Morgan, Lloyds Bank Corporate Markets and Wells Fargo Securities for a EUR 5yr benchmark. The deal follows calls 3-4 Mar

Books open for EUR Mar 2030 benchmark at m/s +220 area

  • Expected ratings are Baa3 / BBB- / BBB+ (M/S/F)
  • The notes are being issued by Harley-Davidson Financial Services Inc
  • Harley-Davidson intends to use the net proceeds of the offering for general corporate purposes
  • Ahead of this trade reverse yankee corporate supply for the year stands at EUR19.15bn already, leaving us on course to beat 2024’s full-year haul of EUR61.02bn, with US companies flocking to euros to make the most of lower borrowing costs this side of the pond
  • Harley-Davidson's only euro line is a EUR700m 5.125% ex-3yr maturing in 2026, meaning ascertaining fair value is tricky. As a barometer, leads highlighted the curves of other similar-rated automakers

Name Ticker Rating Issue Date CCY Size Coupon Maturity Tenor Bid Px I-Sprd Yld

HARLEY-DAVIDSON FINL SER HOG Baa3 / BBB- 05/04/2023 EUR 700 5.125 04-2026 1.1 102.220 62 2.842

FORD MOTOR CREDIT CO LLC F Ba1 / BBB- 24/11/2023 EUR 750 5.125 02-2029 4.0 105.162 154 3.700

FORD MOTOR CREDIT CO LLC F Ba1 / BBB- 14/02/2024 EUR 1000 4.445 02-2030 5.0 102.001 180 3.990

FORD MOTOR CREDIT CO LLC F Ba1 / BBB- 21/02/2025 EUR 750 4.066 08-2030 5.5 100.214 182 4.025

GENERAL MOTORS FINL CO GM Baa2 / BBB 15/02/2023 EUR 750 4.300 02-2029 4.0 103.900 104 3.190

GENERAL MOTORS FINL CO GM Baa2 / BBB 10/05/2024 EUR 750 4.000 07-2030 5.4 102.690 123 3.423

RCI BANQUE SA RENAUL Baa1 / BBB- 26/11/2024 EUR 600 3.375 07-2029 4.4 100.196 116 3.326

RCI BANQUE SA RENAUL Baa1 / BBB- 02/10/2023 EUR 750 4.875 10-2029 4.6 106.154 115 3.323

RCI BANQUE SA RENAUL Baa1 / BBB- 30/09/2024 EUR 800 3.875 09-2030 5.6 101.740 131 3.510

STELLANTIS NV STLA Baa1 / BBB+ 18/06/2021 EUR 1250 0.750 01-2029 3.9 91.174 105 3.209

STELLANTIS NV STLA Baa1 / BBB+ 14/03/2023 EUR 1250 4.375 03-2030 5.0 104.055 126 3.442

STELLANTIS NV STLA Baa1 / BBB+ 19/03/2024 EUR 750 3.500 09-2030 5.5 99.442 140 3.610

VOLVO CAR AB VOVCAB Ba1 / BB+ 08/05/2024 EUR 500 4.750 05-2030 5.2 103.406 179 3.976

NISSAN MOTOR CO NSANY Ba1 / BB+ 17/09/2020 EUR 750 3.201 09-2028 3.5 98.444 153 3.674


Var Energi creates EUR senior curve with 6yr

** Norwegian oil and gas producer Var Energi ASA (Baa3/BBB) mandated Citi, DNB Markets, ING and UniCredit as Global Coordinators to arrange a series of fixed-income investor calls commencing 4-Mar. A EUR 6yr benchmark senior unsecured bond offering is now out. The Joint Active Bookrunners on the offering are BBVA, Citi, DNB Markets, IMI-Intesa Sanpaolo, ING, Natixis, Standard Chartered Bank and UniCredit

IPTs: Books open for EUR Mar 2031 benchmark at m/s +185-190

  • The issue is expected to be rated BBB / Baa3 by S&P & Moody’s
  • Net proceeds will be used for refinancing of existing indebtedness and general corporate purposes
  • Var Energi has just one single currency senior bond outstanding in the form of EUR600m 5.5% May 2029s launched in May 2023 at m/s +250 on a 3.17x covered book. That trade was spotted on the official comps list sent Tuesday morning at i +116 bid
  • Var’s existing line has widened slightly amid yesterday’s risk-off tone to around +120, with bankers on the trade taking that into account when calculating fair value for the new trade. One source was pitching fair value at m/s +150, although noted it was fairly subjective

€€€ Var Energi ASA EUR 6yr: Comps €€€

(indicative bid I-spread pre-announcement)

Norwegian Comps

Bond Rating (M/S/F) Iss. Dt. Amt. Tenor i-spd

VARNO 5.500 5/29 Baa3 / BBB / - May-23 €600mm 4.2yr ms+116bp

AKERBP 1.125 5/29 Baa2 / BBB / BBB May-21 €750mm 4.2yr ms+92bp

AKERBP 4.000 5/32 Baa2 / BBB / BBB May-24 €750mm 7.2yr ms+141bp

Eni Comps

Bond Rating (M/S/F) Iss. Dt. Amt. Tenor i-spd

ENIIM 0.625 1/30 Baa1 / A- / A- Jan-20 €1000mm 4.9yr ms+61bp

ENIIM 2.000 5/31 Baa1 / A- / A- May-20 €1000mm 6.2yr ms+79bp

ENIIM 4.250 5/33 Baa1 / A- / A- May-23 €1250mm 8.2yr ms+112bp

ENIIM 3.875 1/34 Baa1 / A- / A- Jan-24 €1000mm 8.9yr ms+114bp


Affinity Water launches GBP secured green alongside tender

** UK utility company Affinity Water Finance PLC (A3/BBB+/BBB+) mandated Barclays, Lloyds and RBC Capital Markets as Active Bookrunners to arrange a series of fixed income investor calls on 3-4 Mar. A GBP 15.5yr benchmark Class A senior secured green bond transaction is now live, with National Australia Bank as a Passive Bookrunner

IPTs: Books open for exp GBP300m Sep 2040 Class A secured green at mid-gilts (UKT 4.375% 2040) +150-155

  • The bonds are expected to be rated A3 / BBB+ / BBB+ by Moody’s / S&P / Fitch respectively and are guaranteed by Affinity Water Holdings Limited, Affinity Water Limited and Affinity Water Finance (2004) plc
  • The net proceeds of the bonds will used for the financing and/or refinancing of, and/or investment in Eligible Green Projects as set out in the Affinity Water Green Finance Framework which is aligned to ICMA Green Bond Principles and has a Second Party Opinion from DNV
  • A concurrent tender offer in respect of Affinity Water Finance (2004) plc's outstanding GBP250m 5.875% bonds due 2026 and launched in 2004 (XS0195751523) was also announced alongside the initial mandate on Monday


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

IssuerDealRe-offer spread (m/s)Current i-spread (bid)Issue Rating
SANFP2.750% 03/31+58+56.5A1/AA
FLUVIU3.500% 03/35+120+125.5A3
CTPNV3.625% 03/31+145+146Baa3/BBB-
CTPNV4.250% 03/35+188+195.5Baa3/BBB-
ADNA3.250% 03/33+95+103.5Baa1/BBB+
IGIM2.875% 03/30+78+87Baa2/BBB+
IGIM3.500% 03/34+118+130.5Baa2/BBB+
DGFP3.125% 03/33+90+100.5A-
MEOGR4.000% 03/30+180+167.5BBB-
PPG3.250% 03/32+105+110A3/BBB+/BBB+
EMR3.000% 03/31+73+72.5A2/A
EMR3.500% 03/37+110+112.5A2/A
ACFP3.500% 03/33+125+125BBB-/BBB-
RIFP3.250% 03/32+95+105.5Baa1/BBB+
TTEFP3.160% 03/33+80+90Aa3/A+
TTEFP3.499% 03/37+105+117Aa3/A+
TTEFP3.852% 03/45+140+153Aa3/A+
BSX3.000% 03/31+70+78Baa1/A-/A-
BSX3.250% 03/34+90+105Baa1/A-/A-
EDENFP3.250% 08/30+90+94A-
KHC3.250% 03/33+97+110.5Baa2/BBB/BBB
UU3.500% 02/33+118+129Baa1/BBB+/A-
CARLB3.000% 08/29+70+73.5Baa1/BBB+
CARLB3.250% 02/32+88+96Baa1/BBB+
CARLB3.500% 02/35+108+114.5Baa1/BBB+


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