CORP SNAPSHOT: Supply pauses after three-day flurry, TAG Immobilien readies debut

Corporate issuers have retreated to the side-lines on Thursday with attention falling on the start of the headline Jackson Hole Symposium.

Despite the blank on Thursday the weekly euro IG corporate supply total is already at EUR6.5bn and the highest for the sector since the w/e 14-Jun (EUR9.85bn) courtesy of a three-day flurry of issuers making post-vacation funding plays.

The latest to add to that haul were UPM-Kymmene Corp (EUR600m 10yr green) and PACCAR (EUR300m no grow 3yr vanilla) which both extended their existing curves and secured economic funding on Wednesday.

The former emerged from the pipeline with its latest green bond which was upsized from an expected EUR500m on the back of books that finished up at EUR2.35bn (EUR3.2bn peak), with that also allowing the borrower to shave 37bps off IPTs and print with a NIC of -2bps.

PACCAR’s opportunistic and rather defensive line was just half the size at EUR300m. After 40.5bp was hacked from the mid-point of the m/s +85-90 IPTs range the order book fizzled down from EUR1.55bn (peak) to a final EUR930m.

That left the A+/A1 rated 3yr transaction pricing at m/s +47 and 3bp inside fair value.

Away from euros and Toyota Finance Australia offered the first IG corporate sterling paper since 29-Jul on Wednesday, with that coming in the form of a GBP300m (from benchmark) Mar 2028 line.

Demand for the deal peaked at GBP590m (GBP500m final), which saw the borrower issue at gilts +98 from a +110-115bp starting point.

TAG Immobilien to hold calls for debut EUR

Whilst we have no live deals on Thursday and it is unlikely we will see much on Friday given that the Jackson Hole is continuing, one issuer is already eyeing up next week for a potential deal.

That is namely German residential real estate company TAG Immobilien AG (Baa3/BBB-) which has this morning mandated BofA Securities, Deutsche Bank, J.P Morgan and Societe Generale as Joint Bookrunners to arrange a series of fixed income investor calls on Monday and Tuesday (26-27 Aug).

An inaugural EUR 5.5yr benchmark fixed rate senior unsecured offering may follow, subject to market conditions.

The notes, if issued, are expected to be rated Baa3/BBB- (by Moody’s/S&P) and will be offered under TAG Immobilien’s DIP Programme.

Use of proceeds will be for general corporate purposes.

Comps for the debut benchmark euro trade were circulated on Thursday morning as follows:

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

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