CORP SNAPSHOT: Trio emerge from pipeline

Having seen just one issuer on each of the first two days of the week, the IG corporate bond market has seen a slight pick-up on Wednesday although we are hardly seeing a glut of issuance.

Two are live in euros in the form of ITM Entreprises (exp EUR500m 5yr) and Suedzucker AG (EUR500m no grow 7yr), whilst J Sainsbury plc (GBP 5.5yr/10yr two-part) is touting the first sterling corporate paper of the week – with all three issuers emerging after recent roadshows.

As a reminder, Tuesday’s activity came from Stoneweg European REIT which brought a EUR500m (in line with expected size) 6yr green bond following a roadshow.

Fair value for the deal was very subjective with the company having no outstanding euro bonds of its own, but demand was solid at a final EUR2bn (EUR2.4bn peak).

That allowed the borrower to take IPTs of m/s +225-230 to a +195 reoffer.

With the weekly single currency corporate bond total at just EUR2bn heading into Wednesday, and an expected EUR1bn set to price today, the average weekly estimate of EUR9bn looks like it will be out of reach.

In fact, even the lowest guess of EUR7bn looks unlikely at this stage.

Suedzucker hits market ahead of upcoming maturity

** Suedzucker AG (Baa2/BBB), a German integrated group of companies with plant-based solutions for food, animal feeding and energy industries, mandated Helaba, HSBC, ING, KBC and Rabobank as Joint Bookrunners to arrange a series of fixed income investor calls commencing on 20-Jan. A EUR500m no grow 7yr senior unsecured bond transaction is now live

IPTs: Books open for EUR500m no grow Jan 2032s at m/s +225 area

• The notes are being issued through Suedzucker International Finance B.V
• Expected issue rating is BBB by S&P
• Proceeds of the bond offering are to be used for general corporate purposes including the refinancing of a EUR500m 1% ex-8yr bond maturing Nov 2025, the company’s only outstanding senior benchmark

ITM Entreprises creates curve with 5yr

** ITM Entreprises from the Groupement Les Mousquetaires (BBB-/BBB), a French leading independent retailer, and owner of several retail brands in France, including the prominent INTERMARCHE, mandated BNP Paribas, Natixis and Societe Generale as Global Coordinators, as well as Credit Agricole CIB, HSBC and La Banque Postale as Joint Active Bookrunners to arrange a series of fixed income investor calls starting Monday 20-Jan. A EUR 5yr senior unsecured fixed rate benchmark transaction is now out. CIC is a Passive Bookrunner

IPTs: Books open for EUR500m (exp) Jan 2030s at m/s +230-235

• Expected issue ratings are BBB- by S&P and BBB by EthiFinance
• New issue proceeds will be used for general corporate purposes and for the refinancing in part of the syndicated bridge facility provided in connection with the acquisition of Casino’s stores
• ITM tapped the market once last year for a debut EUR300m 5.75% Jul 2029 line which saw final books of EUR730m at the m/s +299.1 reoffer having earlier peaked at EUR900m. That bond was seen on screens at i +175 this morning

J Sainsbury plc ends ten-year hiatus

** UK supermarket company J Sainsbury plc (Baa3/BBB) mandated BNP Paribas, HSBC, Lloyds and NatWest Markets as Active Bookrunners to arrange a series of fixed income investor calls commencing 20-Jan. A GBP dual-tranche benchmark senior unsecured bond offering with long 5yr and 10yr tenors is now live

IPTs:

GBP Jun 2030 benchmark at mid-gilts (UKT 0.375% Oct 2030) +115-120

GBP Jan 2035 benchmark at mid-gilts (UKT 0.625% Jul 2035) +135-140

• Expected issue ratings are Baa3 / BBB (Moody's / S&P)
• Proceeds from the bonds are to be used for general corporate purposes including refinancing of existing indebtedness
• J Sainsbury plc hasn’t issued sterling paper since way back in Jul 2015 when printing a GBP250m non-call Jul 2020 hybrid line

In the pipeline

** Australian electricity distributor Ausgrid Finance Pty Ltd (Baa1/BBB) has hired BNP PARIBAS, BofA Securities, Credit Agricole CIB and ING to arrange a series of fixed income investor meetings and calls commencing from 27-31 Jan. Subject to market conditions, a EUR 8yr benchmark senior secured transaction may follow

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

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