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DAILY CLOSE: Primary remains active, but Athene pulls deal

** The European primary bond market continued its revival Wednesday as more issuers made funding plays ahead of Thursday's US CPI print and the looming earnings season. At least EUR9.6bn was set to be issued in euros Wednesday versus Tuesday's EUR18.64bn. It could have been more, but having not provided an update since IPTs, Athene Global announced late in the day it was not proceeding with a EUR FA-backed 6yr. Despite Athene becoming the ninth euro postponement of 2024, the weekly IG single currency haul is already at EUR29.25bn, meaning with two sessions still to go we have beat the highest combined issuance estimate of EUR29bn given in our weekly issuance poll last week. See the IGM DAILY EUR NICS & BOOKS for details of Wednesday's single currency offerings

** There was no rest for FIG bankers Wednesday as another six non-covered issuers hit the euro market with deals, although only five made it over the line with Athene Global Funding deciding not to move ahead with a 6yr benchmark having issued IPTs at m/s +140a earlier in the day. With that, five deals priced for a total of EUR2.9bn. Standing out of the demand front, Piraeus Bank raised EUR650m (from bmk) via a 5NC4 green senior pref which amassed a final book of EUR4.1bn, a vastly better demand outcome than EUR1.7bn book on its prior senior pref sale in November. Leads trimmed 37.5bps off 5% area IPTs compared to an estimated fair value level in the context of 4.5%-4.625%. Bank of New Zealand made a rare visit to the market with a EUR750m (from bmk) 5yr senior that was 1.93x covered and landed 22bps inside m/s +105 areaa IPTs while insurance paper came from CNP Assurances (EUR500m 12NC7 Tier 2, books EUR2.2bn, NIC ~10bps) and La Mondiale (EUR500 PNC10 RT1, bks EUR1.25bn). In dollars, Resolution Life emerged from the pipeline with its 7yr debut Tier 2 which raised the expected USD500m into a USD1.05bn book. See IGM's FIG SNAPSHOT

** SSA activity continued on the back of another bumper offering from the EU as the European Bank for Reconstruction and Development (EBRD) and French issuer SFIL took a firm grasp of the reins. The former added some rare EUR paper to its debt structure in the shape of a new 7yr green line. With little to go on in terms of an underlying curve of its own the deal appeared to price in line with recent 7yr issuance from Rentenbank (at m/s+12) although slightly longer dated paper (Oct 2031 versus EBRD's July 2031) from EIB was spotted at i+13.5a. SFIL walked almost directly in Bpifrance's footsteps (it priced a deal just yesterday), matching its EUR1.25bn deal size and EUR4.2bn book almost to the EUR although it opted for a shorter 7yr maturity and outdid its peer with 5bp of spread compression. The rest of the day's activity came from German issuers with Baden Wuerttemberg pricing a EUR500m 4yr LSA in FRN format and Land Bremen mandating for a new 7yr EUR500 no grow LSA. In terms of EM deals, the Government of the Emirate of Sharjah brought a debut EUR500m 7yr sustainability line with latest order books signalled above the EUR2.2bn mark. See IGM's SSA SNAPSHOT

** In covered, a duo issued a combined EUR800m on Wednesday, taking the mid-week volume to EUR1.55bn. Having announced calls a month ago, Banco Popolare dell Alto Adige priced its EUR300m no grow Jul 2031 at m/s +71 reoffer (6bp inside guidance) and on final and peak books of EUR850m+ (2.83x cover). Aareal Bank made a second appearance of the year to sell a EUR500m no grow May 2029 HP issue. A peak EUR1.8bn+ (EUR1.6bn+ final) orderbook was registered before the spread was set 6bp inside m/s +58 area guidance

** Two IG corporates hit the market to raise EUR500m apiece Wednesday and put the weekly haul for the asset class at EUR5.2bn, beyond the highest average estimate of EUR5bn. Out after calls was SCR-Sibelco NV (through Silfin NV) with a EUR500m no grow 6yr, its first ever euro benchmark, to help fund its acquisition of Strategic Materials Inc (SMI). Demand of EUR2.85bn (also peak) allowed the borrower to shave 35bps off m/s +275 area IPTs. Also out was more familiar name Logicor whose second single currency of 2024, a EUR500m (from benchmark) 5yr, could have been sold 4.4x over (5.6x peak) having landed 37bps inside IPTs and with a zero NIC. Logicor also announced a tender offer on the day. See the IGM CORP SNAPSHOT for more background

Thursday's primary prospects


** ITM Entreprises from the Groupement les Mousquetaires (unrated), a French leading independent retailer, and owner of several retail brands in France, including the prominent INTERMARCHE, has mandated Credit Agricole CIB and Societe Generale as Global Coordinators, and BNP Paribas, CIC and Natixis as Joint Active Bookrunners to arrange a series of fixed income investor calls commencing on 9-Jul. A debut EUR300-500m 5yr senior unsecured fixed rate transaction is expected to follow, subject to market conditions. 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. Comps here


** Free Hanseatic City of Bremen (AAA) mandated Barclays, DekaBank, Goldman Sachs Bank Europe SE, LBBW, and TD Securities to lead manage its upcoming EUR500m no grow 7yr Landesschatzanweisung


** Banca Sella Holding S.p.A mandated Mediobanca to act as Global Coordinator and Credit Agricole CIB, IMI-Intesa Sanpaolo and Mediobanca as Joint Bookrunners to arrange a series of fixed income investor calls starting 9-Jul. A EUR300m (exp) 5NC4 Senior Preferred transaction will follow, subject to market conditions. The notes are expected to be rated Ba3 / BBBL by Moody's / DBRS


** Bendigo and Adelaide Bank Limited (A-/A-/Baa1) delegated Barclays, Natixis and UBS Investment Bank on a EUR Long 5y Reg S (Bearer form) Soft Bullet Covered Bond transaction, backed by prime Australian residential mortgages. The Covered Bond is guaranteed by Perpetual Corporate Trust Limited and is expected to be rated AAA/Aaa


** Greenalia S.A appointed Clarksons Securities AS, Pareto Securities AS, and Nordea Bank Abp, filial i Norge on a EUR220m 5y senior secured green bond issue

** Rino Mastrotto Group S.p.A., (exp B/B2/B+) has hired BNPP as Sole Physical Bookrunner, BNPP, IMI-Intesa Sanpaolo as Joint Global Coordinators and Unic as Joint Bookrunner for a EUR320m 7NC1 RegS for life/144A Senior Secured FRN, expected ratings B/B2/BB-.

** Rossini S.a r.l. has engaged Deutsche Bank as Sole Physical Bookrunner, Deutsche Bank, Goldman Sachs Bank Europe SE, J.P. Morgan as Joint Global Coordinators and Joint Bookrunners and BNP Paribas, BPER Banca, Credit Agricole CIB, CVC Capital Markets, Jefferies, KKR Capital Markets, Mediobanca, Natixis, Societe Generale, UniCredit as Joint Bookrunners for a EUR1.85bn Reg S/144A Senior Secured two-part issue with EUR Dec-2029 NC2/50/25/par Senior Secured Fixed Rate and EUR Dec-2029 NC1/101/Par Senior Secured Floating Rate tranches.

** The IGM Roadshow Calendar is your one stop window on who, when and where. The calendar view provides an instant snapshot of which days are already earmarked for meetings in a convenient PDF format, with clickable links that take you directly to the known schedule

Wednesday's broader market developments

** EU stocks bounced back from Tuesday's losses following a strong Wall Street lead where S&P and Nasdaq scored their fifth and sixth respective record closes Tuesday, and were looking set to extend their winning run on Wednesday. Focus remained on Powell's testimony and was turning to Thursday's key US CPI print. It was more mixed in Asia where Chinese and HK stocks drifted lower amid deflation worries (China CPI was weaker than expected), whilst the Nikkei hit another record high

** Stoxx600 rose as much as 0.79%. Real Estate the main winner with Utilities also seeing solid gains

** Govvies: EGB yields fell sharply with 10yr GER as much as 6.6bps lower and the FR equivalent -8.2ps

** Data:

- JN Jun PPI matched f/c at 2.9% YoY (prev rev to 2.6% from 2.4%)

- CH Jun CPI lower than exp at 0.2% YoY (f/c 0.4%, prev 0.3%). PPI as exp at -0.8% (prev -1.4%)

- IT May Industrial Production MoM beat at 0.5% (f/c 0.0%, prev -1.0%)

- US May F Wholesale Inventories matched flash at 0.6%

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