CORP SNAPSHOT: Trio to push issuance through weekly target

Another 3 issuers are live in the IG corporate market on Thursday. That means that the weekly euro haul (that currently stands at EUR8.05bn) is set to surpass the average estimate of EUR9bn given in our latest issuance poll.

Emerging from the pipeline are a pair of rare issuers - Worldline (EUR 5yr) which last issued in Sept 2023 and Prysmian (EUR 4/7yr two-part) which hasn't been in the capital markets for 9 years.

Meanwhile opportunistic issuance is on the menu thanks to Iberdrola (EUR benchmark PNC5.75 green hybrid) who return via subsidiary Iberdrola Finanzas SA for its first hybrid issuance since the start of the year (9th Jan EUR700m green PNC7.25).

Thursday’s activity comes after Wednesday saw another three corporates jump in and secure economic funding, although some attrition was noted in orderbooks.

Previously pipelined issuer Goodman European Logistics Fund (EUR300m 7yr green debut) was out on Wednesday along with Smurfit Westrock plc (exp EUR1bn 8/12yr green two-part) and Deutsche Telekom AG (long 10yr benchmark).

The sub-benchmark green debut from GELF saw the day’s smallest NIC (-5bps), with books dropping to EUR1.35bn from a peak of EUR2.2bn after a 40bps spread compression during the execution process.

DT’s second euro of 2024 landed with a 3bp NIC on demand of EUR1.9bn (EUR2.6bn peak), whilst Smurfit Westrock’s first euro bonds since the combination of Smurfit Kapp and WestRock printed flat to fair value on combined orders of EUR5.9bn (EUR6.35bn peak).

Live Deals

Iberdrola brings opportunistic green hybrid

** Iberdrola Finanzas S.A.U., rated Baa1 (stable) / BBB+ (stable) / A- (stable) and guaranteed by Iberdrola S.A., has mandated BNP Paribas, BofA Securities, Commerzbank, HSBC, J.P. Morgan, Natixis, Santander, SMBC, UniCredit (B&D) as Joint Bookrunners for a EUR Benchmark Perpetual NC5.75 years Green Hybrid, exp ratings Baa3 / BBB- / BBB. Pay date 28 November. First Reset Date: 28 Aug 2030. First Call Date: 28 May 2030. The deal comes on an opportunistic basis and is live for Thursday's business.

IPTs: 4.625 – 4.750% area

• Iberdrola Finanzas SAU has been the financing vehicle of choice for Iberdrola since Nov 2021 when it was utilised for a EUR750m PNC6 green hybrid. Since that time Iberdrola has placed just EUR2.45bn of corporate hybrids across three transactions all of which have come with a green label.
• Its last green hybrid outing in Jan 2024 saw the issuer (Iberdrola Finanzas SAU) launch a EUR700m deal into a EUR2.25bn order book. That was down significantly from a peak of EUR3.4bn, due in part to jumbo spread compression of 56.25bps (from IPTs to reoffer), the largest ever for the issuer.

** Comparables**

Ticker Rating (M/S/F) Amt Out Coupon Reset Px i-sprd YTR

IBESM Baa3/BBB-/BBB 1,400 2.250 Apr-29 93.000 +185 4.01%

IBESM Baa3/BBB-/BBB 1,000 1.825 Feb-30 89.625 +181 4.08%*

IBESM Baa3/BBB-/BBB 700 4.871 Apr-31 103.500 +194 4.23%*

*Green

Worldline extends curve with 5s

** France’s Worldline (BBB-), a world leader in payment services, mandated BNP Paribas and Morgan Stanley as Global Coordinators to arrange a series of investor calls 18-19 Nov. A EUR 5yr fixed rate senior unsecured benchmark transaction has gone live

IPTs: Books open for EUR Nov 2029 benchmark at 5.75% area

• The roadshow finished with over 100 accounts engaged, producing a balance of feedback said to be coming in the context of mid 5%. The company has recently replaced its CEO (end of Sept) after another profit warning (its third of the year) and is currently rated BBB- with a negative outlook by S&P.
• The net proceeds from the issuance of the notes will be applied by the issuer for general corporate purposes, which may include in whole or in part refinancing of existing indebtedness, including its outstanding OCEANE’s EUR600m 0% Jul 2025 and/or EUR800m 0% Jul 2026 Convertible/Exchangeable Bonds
• Worldline’s public euro curve currently extends to EUR600m 4.125% Sep 2028s that launched in Sep 2023 at m/s +93 on books of EUR1.05bn, but were spotted trading much wider at i +269 by leads ahead of the new transaction
• Fair value for this one is tricky to pinpoint, but equating for the additional tenor from the Sep 2028s, we saw it in the region of m/s +285

Indicative secondaries (bid side levels vs I-spd)

Rating Coupon Maturity Tenor Size I-sprd Yield

WLNFP -/BBB-/- 0.875 Jun-27 2.6y 500m +259 4.85%

WLNFP -/BBB-/- 4.125 Sep-28 3.8y 600m +269 4.92%

Prysmian ends 9yr EUR hiatus

** Italy’s Prysmian S.p.A (BBB-), a global leader in cable systems for energy and telecommunications, mandated BNP Paribas, Credit Agricole CIB, Citi, Goldman Sachs International, HSBC and IMI-Intesa Sanpaolo as Joint Bookrunners, to organize a series of fixed-income investor calls 18-19 Nov. A dual-tranche EUR 4yr and 7yr benchmark senior unsecured transaction under Prysmian’s newly established EUR3bn EMTN Programme is live:

IPTs:

EUR Nov 2028 benchmark at m/s +175

EUR Nov 2031 benchmark at m/s +205

• Net estimated proceeds of the transaction will be used for the refinancing of the bridge acquisition facilities entered into by Prysmian in the context of the acquisition of Encore Wire
• Prysmian hasn’t issued a public euro bond since way back in 2015 when printing a now matured EUR750m 2.5% Apr 2022 line. With the borrower having nothing outstanding, leads instead highlighted the curves of similar rated/sector peers as follows;

*** Prysmian EUR dual tranche - Comparables ***

Indicative, Pre announcement, Bid Side, vs Mid swap (iSpd) MS+

NEXFP 4.125 3/29 Nr/BB+/Nr 148

NEXFP 4.25 3/30 Nr/BB+/Nr 155

ERICB 5.375 5/28 Ba1/BBB-/BBB- 104

ERICB 1.00 5/29 Ba1/BBB-/BBB- 107

NOKIA 3.125 5/28 Ba1/BBB-/BBB- 96

NOKIA 4.375 8/31 Ba1/BBB-/BBB- 151

SIENFI 4.25 4/29 Nr/BBB-/Nr 122

RXLFP 2.125 12/28 Ba1/BBB+/Nr 152

RXLFP 5.25 9/30 Ba1/BBB+/Nr 171

PCIM 4.25 1/28 Nr/BBB-/BBB 99

PCIM 3.875 7/29 Nr/BBB-/BBB 124

SOLBBB 3.875 4/28 Nr/BBB-/Nr 95

SOLBBB 4.25 10/31 Nr/BBB-/Nr 149

VRLAFP 1.875 11/31 Nr/BBB-/Nr 153

VRLAFP 3.875 11/32 Nr/BBB-/Nr 172

KGXGR 4.00 11/29 Nr/BBB-/BBB 169

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

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