CORP SNAPSHOT: Romgaz makes debut as Alliander offers green

This week’s issuance window is set to be small given Thursday’s German holiday (Unity Day) and Friday’s key US payroll print, so it's no surprise to see two corporate issuers jumping straight in Monday and another joining the pipeline.

From the pipeline we have a debut offering from CEE name Romgaz (EUR500m no grow 5yr), whilst Blue chip Dutch utility company Alliander (EUR 10yr green benchmark) is extending its ESG curve.

Monday’s issuers are kicking off a week that is expected to yield an average EUR5.5bn (EUR10bn high) in euro corporate supply this week according to participants in our weekly issuance poll.

As a reminder, we fell just short of the highest average guess last week (EUR15bn) as EUR14bn priced courtesy of 23 separate tranches from 16 names, which was the sector’s third biggest euro volume week of 2024.

Combined orders for the paper finished up at an impressive looking EUR39.195bn, although there were perhaps some signs of investor indigestion where we saw the lowest average spread compression (-27.56bps) and highest NIC (5.3bps) of any September week.

Given that EUR60bn has priced in the last five weeks combined, such signs of potential indigestion are probably not unexpected.

In terms of September and single currency corporate issuance for the month is currently at EUR40.35bn, with only 2020 (EUR47bn) and 2019 (EUR59.3bn) having seen more September activity.

Summary of last week's EUR corp (excluding HY) deals

Alliander extends green curve with 10s

** Blue chip Dutch utility company Alliander NV (Aa3/A+) this morning hired Bookrunners ABN AMRO, Morgan Stanley, NatWest Markets and RBC Capital Markets for a EUR 10yr green benchmark trade

IPTs: Books open for EUR Oct 2034 green benchmark at m/s +110 area

• Exp issue rating is Aa3 by Moody’s
• Funds from the bond are earmarked to finance and/or refinance, in whole or in part, eligible assets as defined in the issuer’s Green Finance Framework
• Alliander priced a EUR500m non-call Jun 2032 green hybrid in Jun, whilst its last green senior was in Jun last year (EUR500m 3.25% Jun 2028s)
• The borrower’s longest outstanding green is a EUR300m 0.875% Jun 2032 that launched in Jul 2019 and was spotted trading on the official comps list at i +49 bid
• Looking at the official comps list as a whole, we calculated fair value for the new 10yr green at around m/s +75 – which one source close to the trade broadly agreed with

Alliander EUR 10y Pre-Announced Comparables

Issuer Rating (M/S&P) Issue Date Coupon (%) Maturity Size I-Spread Green/ SLB

Alliander NV Aa3 / A+ jun-23 3.25 jun-28 500 48 *

jun-20 0.375 jun-30 500 53 *

jun-19 0.875 jun-32 300 49 *

Nederlandse Gasunie A2 / AA- nov-23 3.875 May-33 300 78 *

jun-22 3.375 jul-34 500 72 **

Enexis Holding NV Aa3 / AA- jun-19 0.75 jul-31 500 54

jun-20 0.625 jun-32 500 60 *

apr-21 0.375 apr-33 500 65 *

jun-23 3.625 jun-34 500 73 *

May-24 3.5 May-36 500 84 *

* = green, ** is SLB

Romgaz makes debut

** Societatea Nationala de Gaze Naturale Romgaz S.A (BBB-), the largest natural gas producer in Romania majority-owned by the Government of Romania, mandated BT Capital Partners, Citi, Erste Group, J.P. Morgan, Raiffeisen Bank and UniCredit as Joint Bookrunners to arrange a series of fixed income investor meetings commencing 23-27 Sep. An inaugural EUR 5yr benchmark senior unsecured notes issuance is now live

IPTs: Books open for EUR500m no grow Oct 2029s at m/s +310 area

• Use of proceeds: General corporate purposes
• With this being Romgaz’s inaugural offering, leads have highlighted the sovereign bonds of Romania as comps along with the securities of other CEE utility companies

Romania EUR Curve

Bond Rating Issue Dt. Amt. Tenor i-spd

ROMANI 6.625 9/29 Baa3 / BBB- / BBB- Sep-22 2755 5.0yr +223bp

ROMANI 6.625 9/29 Baa3 / BBB- / BBB- Sep-22 2655 5.0yr +223bp

ROMANI 1.375 12/29 Baa3 / BBB- / BBB- Dec-20 1000 5.2yr +229bp

Broader CEE Utility Curves

CEZCP 4.125 9/31 Baa1 / A- / - Sep-24 700 6.9yr +161bp

EPEN 5.875 11/29 - / BBB- / BBB- May-24 500 5.2yr +266bp

ENAPHO 1.816 3/31 Ba2 / BBB- / BBB- Mar-21 500 6.4yr +209bp

(Pre-announcement, indicative bid levels)

Adecco joins the pipeline

** Adecco Group AG (Baa1/BBB+), a leading provider of talent and technology expertise headquartered in Zurich, has mandated Barclays, BofA Securities, Commerzbank and UniCredit as Joint Bookrunners on a potential EUR300m no grow 8yr senior unsecured bond offering

• The notes will issued out of Adecco International Financial Services B.V (Country: NL)
• Proceeds will be used for general corporate purposes, including repayment of debt maturities. Note, the borrower has a EUR500m 1% ex-8yr line maturing on 12-Dec-2024
• The new deal will extend the borrower’s single currency senior curve from EUR500m 0.5% Sep 2031s which printed in Sep 2021 and were seen bid at i +102 bid pre-announcement of the new mandate

€€€ Adecco Group AG (Baa1/BBB+) Indicative Pre-Announce Comps €€€

(Bid side vs I-Sprd)

Ticker Ratings (M/S) Coupon Maturity Tenor I-Sprd

ADENVX Baa1/BBB+ 0.125 Sep-28 3.9 64

ADENVX Baa1/BBB+ 1.250 Nov-29 5.1 72

ADENVX Baa1/BBB+ 0.500 Sep-31 6.9 102

Other Services/Recent 6-10yr

Ticker Ratings Coupon Maturity Tenor I-Sprd

EXPNLN A3/A- 3.375 Oct-34 10.0 95

EDENFP -/A- 3.625 Jun-31 6.7 112

EDENFP -/A- 3.625 Aug-32 7.8 116

RELLN A3/BBB+ 3.375 Mar-33 8.4 89

BXBAU Baa1/BBB+ 4.250 Mar-31 6.4 90

WKLNA NR/BBB+ 3.750 Apr-31 6.5 80

BNZLLN -/BBB+ 3.375 Apr-32 7.5 108

Already in the pipeline

** Spanish environmental services company FCC Servicios Medio Ambiente Holding S.A (BBB) rated BBB (stable) by Fitch has mandated BBVA as Global Coordinator, BBVA and CaixaBank as Green Structuring Advisors and Banco Sabadell, BBVA, CaixaBank, Credit Agricole CIB, HSBC and Santander as Joint Active Bookrunners to arrange a series of fixed income investor calls starting 30-Sep. a EUR500m (exp) 7yr green bond may follow. The net proceeds of the issuance will be allocated to the financing and/or refinancing, in whole or in part, the development, construction, installation, maintenance of new or existing projects, assets or activities that meet eligibility requirements set out in the issuer’s Green Financing Framework

** 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 will follow. Concurrently, Hammerson will conduct a capped tender offer for its outstanding GBP 3.500% October 2025 (XS1311391012), 6.000% February 2026 (XS0184639895) and 7.250% April 2028 (XS0085732716) notes

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

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