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DAILY CLOSE: Solid start to June as loads more line up ahead of ECB

** It was a strong start to the new week/month for the European bond market as a number of financial and corporates jumped in with a mixture of euro and sterling paper against what was an upbeat backdrop. In the end we saw EUR9.06bn and GBP1.65bn price, as detailed in the respective daily EUR and GBP NICs & Books reports, whilst more is on the way in both currencies (and USD) to follow a flurry of new mandates on Monday. In the single currency, Germany's syndicated EUR3bn Aug 2053 green tap will spearhead proceedings with the full list of Tuesday's potential offerings below

** In non-covered FIG, five hit euros to raise EUR5.5bn, already topping last week's EUR5bn full week total. Aggregate demand was strong and last touted at EUR17.25bn with a whopping EUR10bn of that directed at a PNC 4/30 AT1 from Deutsche Bank which raised EUR1.5bn some 62.5bps inside 8.75% area IPTs. That is more than twice the demand seen for a EUR AT1 this year, with 2024's prior biggest book belonging to ABN AMRO for its EUR750m PNC 9/31 line on 26th Feb which saw EUR4bn in demand. For lower beta palates came The Bank of Nova Scotia BNS Corp (EUR750m from bmk 3yr senior FRN, bks 900m, NIC ~2), Nordea Bank Abp (EUR1bn from bmk 5yr senior pref, bks 1.35bn, NIC ~5.5), JPMorgan Chase & Co 2-part 4NC3 senior unsecured (EUR1.25bn FIX / EUR500m FRN, bks1.3bn / 2.8bn) and New York Life Global Funding (EUR500m 10yr FABN, bks 900m, NIC 7.5). Otherwise, hitting sterling were Rothesay Life Plc (GBP500m 10.5yr Tier 2, bks 1.65bn) and The Bank of Montreal (GBP350m 10/28 senior bail-in, bks 500m). Tuesday is shaping up to be busy too after a flurry joined pipeline including OTP Bank Nyrt (EUR500m 4NC3 green senior pref), Alpha Services and Holdings S.A (EUR500m n/g 10.25NC5.25 Tier 2) CCF Holding (EUR200m exp EUR PNC 1/30 AT1) and Coventry Building Society (GBP Benchmark PNC5.5 AT1) while calls will continue tomorrow for Athora Holding Ltd (EUR Benchmark 10.25yr Tier 2). See IGM's FIG SNAPSHOT

** Two IG corporates kicked off the new week/month, where Philip Morris International Inc (EUR Jan 2031s) added to the recent reverse yankee glut, whilst going big was Volkswagen Financial Services AG (EUR700m 3yr FRN & EUR800m 2.25yr / EUR750m 6.25yr FXD green three-part). The latter, earmarked to finance and/or refinance the eligible green projects relating to vehicles with zero-tailpipe emissions, saw strong combined demand last communicated EUR8.55bn - with that skewed heavily to the longest line at EUR4.2bn. That saw the 2030s ramped in 40bps from reoffer to land with a 5bp NIC, whilst the 2.25yr fixed line was squeezed in 32bps (8bp NIC) on books of EUR2.45bn. No booksize was communicated on the PM deal due to its SEC-registered nature, but demand was sufficient for the borrower to take the reoffer down to m/s +110 (5bp NIC) from +135 area IPTs. Pointing to a busier session Tuesday, CEZ a.s (EUR 8yr SLB), CNH Industrial N.V (debut EUR 7yr), A2A S.p.A (inaugural EUR PNC5.25 green hybrid) and unrated Fraport AG Frankfurt Airport Services Worldwide (EUR 8yr) joined a quartet of names already in the pipeline. See the IGM CORP SNAPSHOT

** In SSAs, nothing was priced on the day, but Tuesday has definitely been set up to be rather busy (in terms of deal numbers at least). In euros, a proposed 5yr deal from CPPIB Capital Inc is set to be joined by a slightly longer 5yr (Oct 2029) from Instituto de Credito Oficial. Meanwhile, BNG Bank is moving slightly further along the curve (7yr) with a sustainability-labelled transaction which has been set in volume from the outset at EUR1bn (no grow). The Federal Republic of Germany will likely complete its 2024 syndicated funding (and actually surpass its expected issuance volume of EUR12bn) with the announced EUR3bn tap of the existing Aug 2053 green line. On the dollar side of proceedings, shorter dated (3yr) lines from the Council of Europe Social Development Fund and Kommunalbanken Norway have been joined by a new 5yr from IDA and a 10yr from the Province of British Columbia. The latter was only active in the EUR market weeks ago (with a EUR1.5bn rare 15yr) and will be looking to bring its new 10yr USD on the back of April and May issued 10yr deals from the Provinces of Ontario and Manitoba respectively. See IGM's SSA SNAPSHOT

** LBBW was the only issuer to raise any covered paper on Monday, printing a EUR750m Nov 2029 dated Pfandbrief. Pricing was 5bp inside guidance and finalised at m/s +22 with the orderbook coming to a final and peak EUR1.65bn+. Looking ahead, Achmea Bank and OCBC have added to the pipeline with EUR500m no grow 12yr and EUR500m no grow 3yr CBs respectively

** The IGM European Weekly Credit Overview is your comprehensive round-up of primary European new issue activity including pricing, order book information, new issue concessions and ISINs

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