CORP SNAPSHOT: Seven battle for attention

The distraction of a key US CPI print and headline bank earnings this afternoon has done nothing to put off euro corporate bond issuers hitting the market in their droves on Wednesday.

No fewer than seven names are working deals in the single currency, with Motability Operations also working a GBP 20yr social line alongside its EUR 8yr and 12yr euro socials.

BMW is working a two-part euro of its own in the form of 4.5yr and 8yr lines, whilst Inmobiliaria Colonial (exp EUR500m green) and Sixt (EUR500m no grow) are extending their curves with 5yr trades.

Alongside those deals we have three rare names offering sub-benchmark euro trades, namely Sirius Real Estate (exp EUR300m 7yr), Societa Esercizi Aereoportuali (EUR300m no grow 7yr) and Ipsos (EUR400m no grow 5yr).

As a reminder, Tuesday saw four corp issuers offer a combined five tranches in the single currency worth EUR3.5bn, with both senior and hybrid paper on the menu.

The latest supply was chased by combined peak orders worth EUR16.2bn although that fell to EUR12.6bn at the last count after the day’s issuers ramped in pricing to offer little in the way of a final premium versus underlying curves.

Seeing the most sensitivity in the booksize was the day’s higher-beta EUR900m PNC6.25 & EUR600m PNC9.25 two-part hybrid from Eni SpA which saw demand fall to a last communicated EUR3.4bn from a EUR4.9bn peak after each tranche printed 50bps inside IPTs and flat to fair value.

Senior paper came from Teleperformance SE (EUR500m 5yr; 2.7bn bk from 3bn peak), Holding d'infrastructures de Transport (EUR600m 4.25yr; final 2.6bn bk from 3.8bn peak) and Toyota Motor Finance (EUR900m 3.25yr; final 4.4bn bk from 4.5bn peak), with the final NICs coming in at 5bps, -5bps and -2bps respectively.

Tuesday’s trades put the weekly corporate total at EUR4.55bn and closer to the average guess of EUR11.5bn, a total which we could threaten today given the barrage of activity.

BMW off the mark for 2025 with dual-tranche

** German automaker BMW AG (A2/A) hired BNP Paribas, Credit Agricole CIB, HSBC, SEB and UniCredit for an opportunistic EUR 4.5yr and 8yr two-part benchmark transaction

IPTs:

EUR Jul 2029 benchmark at m/s +110 area

EUR Jan 2033 benchmark at m/s +135-140

• The bonds are being issued via the company’s Dutch finance arm BMW International Investment B.V
• Expected issue ratings are A2/A (Moody’s/S&P)
• Funds are to be used for general corporate purposes
• BMW is a regular issuer of euro debt and therefore has a well-stocked curve, where an adjustment of the official levels sent this morning (below) would put fair value for the 4.5yr at m/s +75 and at +100-105 on the longer 8yr

*** BMW Dual Tranche EUR 4.5yr / 8yr - Comps ***

Indicative, Pre announcement, Bid Side, vs Mid Swap (Ispd):

Issuer Rating Coupon Maturity Term MS+

BMW A2/A/- 3.875 Oct-28 3.7 70

BMW A2/A/- 3.25 Nov-28 3.8 69

BMW A2/A/- 1.5 Feb-29 4.1 69

BMW A2/A/- 3.25 Jul-30 5.5 56

BMW A2/A/- 3.125 Aug-30 5.6 92

BMW A2/A/- 0.875 Jan-32 7 82

BMW A2/A/- 3.5 Nov-32 7.8 102

BMW A2/A/- 0.2 Jan-33 8 100

BMW A2/A/- 4.125 Oct-33 8.7 111

BMW A2/A/- 3.375 Feb-34 9.1 118

BMW A2/A/- 3.375 Aug-34 9.6 118

BMW A2/A/- 3.625 May-35 10.3 111

Motability Operations out with another three-part social

** UK borrower Motability Operations Group plc (A2/A) mandated Barclays, HSBC, Lloyds and NatWest Markets as Active Bookrunners to arrange a series of fixed income investor calls commencing 13-14 Jan. A senior unsecured triple-tranche benchmark size social bond transaction across EUR 8yr and 12yr and GBP 20yr tenors is now live

IPTs:

EUR Jan 2033 social benchmark at m/s +160-165

EUR Jan 2037 social benchmark at m/s +185-190

GBP Jan 2045 social benchmark at mid gilts (UKT 3.5% Jan 2045) +135 area

• Marketing concluded Tuesday with over 60 accounts engaged
• Expected ratings are A2 by Moody’s and A by S&P
• The funds from the bonds are to be used to finance or refinance, in whole or in part, Eligible Social Projects. The issuance will be in line with the issuer’s Social Bond Framework
• This is a regular format for the borrower with it printing EUR700m 5.5yr, EUR1bn 10yr & GBP500m 30yr socials in Jan last year, following that up in Jun with more EUR1bn long 5yr, EUR1bn 11yr and GBP500m 30yr socials
• The average NIC across four euro socials last year was fairly high at 21.25bps and at 12.5bps on the two sterling, with the borrower appearing to be again taking a pragmatic approach this morning with us seeing the initial NICs on the latest euro trades at 40-45bps and 35-40bps on the GBP

*** EUR Comparables ***

(indicative pre-announce bid side levels vs i-spread)

Security Ccy Ticker Issue Date Size (m) Coupon Maturity Yrs to Maty I-Spread

MOTOPG 3 5/8 07/24/29 EUR MOTOPG Jan-24 700 3.625 Jul-29 4.5 90

MOTOPG 4 01/17/30 EUR MOTOPG Jun-24 1000 4 Jan-30 5 100

MOTOPG 3 1/2 07/17/31 EUR MOTOPG Jan-23 500 3.5 Jul-31 6.5 105

MOTOPG 3 7/8 01/24/34 EUR MOTOPG Jan-24 1000 3.875 Jan-34 9 128

MOTOPG 4 1/4 06/17/35 EUR MOTOPG Jun-24 1000 4.25 Jun-35 10.4 134

*** GBP Comparables ***

(indicative pre-announce bid side levels vs gilts)

Security Ccy Ticker Issue Date Size Coupon Maturity Yrs to Maty G-Spread

MOTOPG 1 1/2 01/20/41 GBP MOTOPG Jan-21 350 1.5 Jan-41 16 87

MOTOPG 2 1/8 01/18/42 GBP MOTOPG Jan-22 500 2.125 Jan-42 17 85

MOTOPG 4 7/8 01/17/43 GBP MOTOPG Jan-23 350 4.875 Jan-43 18 94

MOTOPG 5 3/4 09/11/48 GBP MOTOPG Sep-23 400 5.75 Sep-48 23.7 101

MOTOPG 5 3/4 06/17/51 GBP MOTOPG Jun-24 500 5.75 Jun-51 26.4 96

MOTOPG 5 5/8 01/24/54 GBP MOTOPG Jan-24 500 5.625 Jan-54 29 98

Inmobiliaria Colonial to offer first euro deal since 2021

** Spanish REIT Inmobiliaria Colonial (Baa1/BBB+) mandated BNP Paribas, CaixaBank, Credit Agricole CIB (Green Bond Structurer), IMI-Intesa Sanpaolo, Natixis and Societe Generale as Global Coordinators and Active Bookrunners, to arrange a series of fixed income investor meetings 13-14 Jan. A EUR500m (exp) 5yr fixed rate senior unsecured green bond offering is now live, with further Joint Bookrunners Banco Sabadell, BBVA, BofA Securities, HSBC, JP Morgan and Mediobanca

IPTs: Books open for exp EUR500m Jan 2030s at m/s +145 area

• Marketing concluded Tuesday, having engaged with 100+ investors in group calls and/or deal roadshow
• The transaction is expected to be rated BBB+ by S&P
• Net proceeds of the green bond issue will be used to finance or refinance Eligible Green Assets as further described in the Green Bond Framework
• Inmobiliaria Colonial last issued a new euro benchmark in Jun 2021, a EUR500m 0.75% Jun 2029 green which was tapped a month later for a further EUR125m. That bond was spotted at i +93 bid on the official comps list sent earlier in the week
• Equating for the additional curve from the borrower’s longest outstanding EUR500m 2.5% Nov 2029 green which launched in 2017 and was at +97 bid pre-announcement, we saw fair value for the new 5yr at m/s +100-105 which bankers both on and off the trade agreed with

* Indicative bid side levels before announcement

i+

COLSM - / BBB+ 22/06/2029 0.750% € 625 Mn 93

COLSM - / BBB+ 28/11/2029 2.500% € 500 Mn 97

MRLSM Baa1 / BBB+ 01/06/2030 1.375% € 500 Mn 91

MRLSM Baa1 / BBB+ 04/12/2034 1.875% € 600 Mn 133

GMGAU Baa1 / BBB+ 03/05/2030 4.250% € 500 Mn 96

COVFP - / BBB+ 05/06/2032 4.625% € 500 Mn 135

SHRLUX - / BBB+ 22/10/2034 3.625% € 500 Mn 135

URWFP Baa2 / BBB+ 11/09/2029 3.500% € 650 Mn 108

URWFP Baa2 / BBB+ 11/12/2030 4.125% € 750 Mn 115

URWFP Baa2 / BBB+ 11/09/2034 3.875% € 650 Mn 159

Heathrow Funding BBB+/-/A- 1,875 Jul-32 7,5 115

Heathrow Funding BBB+/-/A- 4,5 Jul-33 8,5 128

Royal Schiphol Group Nv A/A2/- 1,5 Nov-30 5,8 78

Royal Schiphol Group Nv A/A2/- 0,875 Sep-32 7,7 94

Sydney Airport Finance BBB+/Baa1/- 3,75 Apr-32 7,3 103

Sixt extends with 5s

** German provider of mobility services Sixt SE (BBB) mandated BNP Paribas, Commerzbank, Deutsche Bank, DZ BANK AG and UniCredit as Joint Bookrunners to arrange a series of fixed income investor calls on 14-Jan. A EUR500m no grow 5yr senior unsecured bond transaction is now out

IPTs: Books open for EUR500m no grow Jan 2030s at m/s +135 area

• The notes are expected to be rated BBB by S&P
• Proceeds of the bond offering will be used for general corporate purposes
• Sixt tapped the market once last year, pricing EUR500m 3.75% Jan 2029s at m/s +128 on a 4x covered book in Jan. That bond is the company’s longest outstanding, and was spotted by leads on the official comps list sent Tuesday morning at i +84 bid
• Equating for the additional year from the Jan 2029s we saw fair value for the latest 5yr at m/s +95, although one banker close to the deal argued it was slightly wider at +100

*** Sixt - Pre-announcement Comparables ***

* Indicative bid side i-spread *

Ticker Ratings (M/S/F) Cpn Mat TTM Amt I-Sprd

SIXT SE -/BBB/- 5.125 Oct-27 (2.7y) 300 61

SIXT SE -/BBB/- 3.750 Jan-29 (4.0y) 500 84

>> SERVICES

AMADEUS IT GROUP Baa2/BBB/- 3.500 Mar-29 (4.2y) 500 80

ACCOR -/BBB-/BBB- 2.375 Nov-28 (3.9y) 700 99

ACCOR -/BBB-/BBB- 3.875 Mar-31 (6.2y) 600 125

HM FINANCE -/BBB/- 0.250 Aug-29 (4.6y) 500 93

>> AUTO RELATED

PIRELLI & C SPA -/BBB-/BBB 3.875 Jul-29 (4.5y) 600 104

CONTINENTAL AG Baa2/-/BBB 4.000 Jun-28 (3.4y) 750 73

CONTINENTAL AG Baa2/-/BBB 3.500 Oct-29 (4.7y) 600 104

AUTOLIV INC -/BBB/- 3.625 Aug-29 (4.6y) 500 106

Sirius Real Estate touts sub-bmk 7yr

** German-focused business park operator Sirius Real Estate Limited (BBB) hired Deutsche Bank, HSBC and Morgan Stanley as Joint Bookrunners to arrange a series of fixed income investor calls 14-Jan. A EUR300m (exp) 7yr senior unsecured bond transaction has materialised

IPTs: Books open for exp EUR300m Jan 2032s at m/s +225 area

• The notes are expected to be rated BBB by Fitch
• The use of proceeds of the potential bond offering is for general corporate purposes, including the refinancing of existing debt
• Incurrence Covenants:

1. Net Loan-to-Value (LtV) ≤ 60%
2. Net Secured Loan-to-Value (Secured LtV) ≤ 35%

• Maintenance Covenants:
  1. Unencumbered Assets to Unsecured Debt Ratio ≥ 1.50
  2. Fixed Charge Coverage Ratio ≥ 2.75
• Sirius has just two bonds outstanding, both sub-benchmarks launched in 2021, with the longest EUR360m 1.75% Nov 2028s spotted on the comps list sent yesterday at i +173 bid

€€€ Sirius Real Estate 7yr EUR300m Exp - Comps €€€

Indicative, pre announcement, bid side, vs Mid Swap (Ispd):

Security Ratings Amount Outstanding Spread vs. Swaps (bps)

SRELN 1.750 24/11/28 N/A / N/A / BBB EUR 360m 173

BPPEHX 1.625 20/04/30 N/A / BBB / N/A EUR 500m 169

CTPNV 4.750 05/02/30 Baa3 / BBB- / N/A EUR 825m 149

LOGICR 0.875 14/01/31 N/A / BBB / N/A EUR 650m 149

PTHREE 4.000 19/04/32 N/A / BBB / N/A EUR 500m 166

SAGAX 1.000 17/05/29 Baa2 / N/A / N/A EUR 500m 129

SEA SpA hits market ahead of upcoming maturity

** Italian airport operator SEA SpA (Societa Esercizi Aereoportuali), rated A- by S&P, mandated BNP Paribas and Mediobanca as Global Coordinators, together with Banca Akros, Citi and IMI-Intesa Sanpaolo as Joint Bookrunners, to arrange a series of fixed income investor calls 13-14 Jan. A EUR300m no grow 7yr senior unsecured bond is out

IPTs: Books open for EUR300m no grow Jan 2032s at m/s +150 area

• Marketing concluded yesterday with over 65 investors participating in small group calls and/or dealroadshow
• Funds generated from the offering are to be used for the refinancing of existing indebtedness and general corporate purposes
• SEA SpA has just one bond outstanding in the form of an ex-5yr EUR300m 3.5% bond that matures in Oct this year
• As a barometer for fair value for the new issue, leads highlighted the curves of similar-rated sector peers as comparables

Indicative pre-announcement comparables (as of 13/01/2025)

Issuer Rating (S/M/F) Coupon (%) Maturity Tenor I Spread

Aena -/A3/A 4,25 Oct-30 5,8 94

Aeroporti Di Roma BBB/Baa2/BBB- 1,75 Jul-31 6,6 121

Aeroporti Di Roma BBB/Baa2/BBB- 4,875 Jul-33 8,5 127

Aeroports De Paris A-/-/BBB+ 3,375 May-31 6,3 106

Aeroports De Paris A-/-/BBB+ 1,5 Jul-32 7,5 107

Australia Pacific Airport BBB+/Baa1/- 4,375 May-33 8,4 123

Daa Finance A/-/- 1,601 Nov-32 7,8 106

Heathrow Funding BBB+/-/A- 1,125 Oct-30 5,7 106

Ipsos makes rare appearance

** French borrower Ipsos SA (Baa3/BBB), a leader in the market and public opinion research industry, mandated Barclays, HSBC and Societe Generale as Joint Global Coordinators and BNP Paribas, Barclays, Credit Agricole CIB, CIC, HSBC, Natixis and Societe Generale as Joint Active Bookrunners to arrange a series of European fixed income investor calls 13-14 Jan. A debut rated senior unsecured EUR400m no grow 5yr offering is now live

IPTs: Books open for EUR400m no grow Jan 2030s at m/s +185 area

• Ipsos has just one bond outstanding in the form of a soon-maturing EUR300m 2.875% Sep 2025 line launched in Sep 2018, with funds from the new offering to be used to refinance that
• This new deal is the company's first since it received ratings from Moody’s and Fitch last week, with details here
• With the company having no meaningful curve of its own, leads instead highlighted the bonds of other sector peers as comparables

Bond Ratings Tenor Amount (€m) Bid i-sprd (bps)

INFLN 3 10/23/27 Baa2 / BBB / BBB 2.8Y 600 73

INFLN 3 1/4 10/23/30 Baa2 / BBB / BBB 5.8Y 650 107

INFLN 3 5/8 10/23/34 Baa2 / BBB / BBB 9.8Y 500 125

WPPLN 3 5/8 09/12/29 Baa2 / BBB / NR 4.7Y 350.6 83

WPPLN 4 09/12/33 Baa2 / BBB / NR 8.7Y 500 129

DECFP 5 01/11/29 Baa3 / BBB- / NR 4.0Y 600 113

DECFP 1 5/8 02/07/30 Baa3 / BBB- / NR 5.1Y 500 123

OMC 3.7 03/06/32 Baa1 / BBB+ / NR 7.1Y 600 109

FIS 2 05/21/30 Baa2 / BBB / BBB 5.4Y 1000 86

FI 4 1/2 05/24/31 Baa2 / BBB / NR 6.4Y 800 104

ERFFP 4 3/4 09/06/30 Baa3 / NR / BBB- 5.6Y 600 138

ISSDC 3 7/8 06/05/29 Baa3 / BBB / NR 4.4Y 500 103

ELISGP 3 3/4 03/21/30 NR / BBB- / NR 5.2Y 400 118

Iren readying debut hybrid

** Italian integrated multi-utility company Iren S.p.A (BBB/BBB) on Wednesday hired BofA Securities, Goldman Sachs International, Societe Generale and UniCredit to arrange a series of fixed income investor calls on Wednesday (15-Jan). An inaugural EUR500m no grow PNC5.25 hybrid offering will follow

• The Joint Bookrunners on the notes will be Barclays, BofA Securities, Citi, Goldman Sachs International, IMI - Intesa Sanpaolo, Mediobanca, Societe Generale and UniCredit
• Expected instrument rating of BB+, BB+ by S&P and Fitch
• New issue proceeds will be used for general corporate purposes

** Pre-Announcement Indicative Bid-Side Levels **

**IREN SpA SNR Curve*

Ticker Rating Amt.(mm) CPN(%) Maturity I-SPRD

IREIM BBB/BBB 500 1.000% Jul-2030 +61

IREIM BBB/BBB 500 0.250% Jan-2031 +90

IREIM BBB/BBB 500 3.875% Jul-2032 +115

** Selected Hybrids **

TICKER Hybrid Rating CPN RESET PRICE I-SPRD YTR

AEMSPA Ba1/BB+ 5.000% Sep-2029 101.512 +215 4.625%

ENELIM Baa3/BB+/BBB- 4.250% Apr-2030 99.258 +192 4.415%

ENELIM Baa3/BB+/BBB- 4.500% Jan-2033 98.50 +219 4.730%

ORSTED Baa3/BB/BBB- 5.125% Dec-2029 102.850 +197 4.463%

SRGIM Ba1/BBB-/BBB- 4.500% Dec-2029 100.775 +184 4.319%

TRNIM Ba1/BBB-/ - 4.750% Apr-2030 101.850 +185 4.343%

Already in the pipeline

** Norwegian aluminium and renewable energy company Norsk Hydro ASA (Baa2/BBB) mandated Citi, Danske Bank, ING, J.P. Morgan and SEB as Joint Bookrunners to arrange a series of fixed income investor calls commencing 14-15 Jan. A EUR500m no grow 7yr green bond may follow. An amount equal to the net proceeds of the issuance of the notes will be used to fund eligible projects and activities that are in keeping with the Green and Sustainability-Linked Financing Framework

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

---- Subscribe to read more ----

To receive this analysis plus much more, subscribe to IGM. Request your free trial of the service today.