FIG SNAPSHOT: Six deals set to price as issuers jump on excess demand

The very strong reception given to Tuesday’s deals gave a green light that the primary markets are open for business, following which issuers have wasted little time to the extent that six deals are set to price on Wednesday, five of which are opportunistic.

That will add to Tuesday’s EUR2.15bn total haul and take the week’s tally closer to the EUR8bn average guess.

Today’s deals span the entire capital structure where senior deals come from Belfius Bank (EUR500m Feb-2031 SNP), Nykredit Realkredit (EUR bmk Jan-2030 SNP) and UniCredit (EUR bmk 4NC3 Snr Pref FRN).

In the subordinated space comes BPER Banca (EUR500m PNC Mar-2030 AT1), Commerzbank (EUR500m 12.25NC7.25 Green Tier 2) and Athora Netherlands N.V. (EUR400m PNC7 RT1) where the latter is following up on a two-day marketing exercise.

Boding well for today’s issuers, Tuesday’s all-green affair provided some clear signs that the good times are still here for issuers where the trio raised EUR2.15bn into books that peaked at EUR11.6bn and were finalised at EUR10.85bn.

At final books, the day’s average cover ratio was 5.26x while strong demand also handed sellers plenty of pricing power where NICs were minimal to non-existent (or even negative).

Seeing the day’s biggest book, ING Groep refreshed its senior holdco curve with a 8NC7 benchmark that was sized at EUR1bn into final demand EUR4.2bn (NIC zero) while the most oversubscribed deal of the day (just) at 5.8x was Danke Bank’s EUR500m capped 12NC7 Tier 2 (NIC zero). Otherwise, the keenest price of the day was achieved by National Bank of Greece where its EUR650m (from benchmark) 6NC5 senior pref priced through some estimates of fair value into a 5.77x book.

Commerzbank extend Tier 2 curve with 12.25NC7.25 green

** Commerzbank Aktiengesellschaft, rated A2 (positive) by Moody's / A (Stable) by S&P, has mandated Commerzbank as Global Coordinator & Green Structuring Advisor and Commerzbank, Danske Bank, DB, HSBC and ING as Bookrunners for a EUR500m WNG 12.25NC7.25 (due 20-February-2037) Reg S onlyGreen Tier 2 issue, expected ratings Baa3 by Moody’s / BBB- by S&P. Pay date 20 November. Reset Date 20-February-2032. Coupon (short first coupon), fixed until 20th February 2032. If not redeemed early coupon resets at interpolated 7yr & 8yr MS annual act/act ICMA, following unadjusted.

IPTs: MS+230bp area

• This marks Commerzbank’s second Tier 2 sale of the year to follow a EUR750m 10.5NC5.5 vanilla line in April (4.875% 10/34-29) which priced at m/s +215 into a EUR3.1bn final book.
• That line was spotted by leads on today’s deal at i+182 to call with an adjustment for the curve and green format seen as supporting a fair value estimate on today’s sale in the region of m/s +mid 190s.

UniCredit offer low beta option via EUR 4NC3 senior pref FRN

** UniCredit S.p.A (Baa1 (stable)/ BBB (stable)/ BBB+ (positive)) has mandated UniCredit Bank GmbH as Global Coordinator and Sole Bookrunner and BNP Paribas, Erste Group, Mediobanca, Raiffeisen Bank International, TD Securities, and UniCredit Bank as Joint Lead Managers for its Euro-denominated Benchmark RegS, Callable Senior Preferred Note due 20 November 2028. The transaction will have a 4NC3 tenor and a Floating-to-Floating Rate structure (3-month Euribor). Pay date 20 November.

IPTs: 3mE+100bp area

• The initial update touted books above EUR1.75bn.
• Comps were released as follows;

Athora Netherlands follow calls with upsized PNC7 RT1

** Athora Netherlands N.V (Ticker: ATHORA), rated A- (Stable) by Fitch, has mandated BofA Securities and Morgan Stanley as Global Coordinators and ABN AMRO, BofA Securities, Morgan Stanley, Natixis and Santander as Joint Lead Managers for a EUR denominated RegS bearer perpetual Restricted Tier 1 offering, resettable in year 7. The transaction is expected to be rated BBB- by Fitch. Pay date 18 November.

IPTs: 7.250% area (S/A). Issue Amount: EUR400m (WNG)

• The deal follows a mandate announcement made that originally touted an expected size of EUR300m and was accompanied by a concurrent tender offer the issuer’s outstanding EUR300m Perpetual Restricted Tier 1 Notes (ISIN: XS1835946564). Details here
• Books were above EUR1.5bn at the initial update, before growing to EUR3bn+ and allowing the final price to be set at 6.75%.
• Six issuers have sold euro RT1 paper in 2024, the most recent being La Mondiale on 10th July where its EUR500m PNC10 attracted demand worth EUR1.2bn.
• Comps were circulated Monday as follows;

Ticker Coupon Amt Ratings Maturity/Call Bid Px YTC (S/A) I-Sprd Reset

NNGRNV 6.375% 750m -/BBB-/BBB+ Perp Sep-30s 103.10 5.74% +348 +385

ACHMEA 4.625% 500m -/BB+/BBB Perp Mar-29s 95.375 5.84% +360 +478

ASRNED 6.625% 500m -/BB+/- Perp Dec-31s 102.65 6.16% +388 +403

FIDELI 7.750% 500m -/-/BBB Perp May-29s 104.55 6.57% +432 +504

Belfius Bank holding second SNP sale of the year

** Belfius Bank SA/NV (ticker: "CCBGBB"), rated A1 (Stable) / A (Stable) / A- (Stable), has mandated ABN AMRO, Belfius, Deutsche Bank, Morgan Stanley, NatWest Markets and Societe Generale as Joint Bookrunners for a EUR500m WNG 6.25-year Senior Non-Preferred issue due 20 February 2031, exp ratings A3/BBB+. Pay date 20 November.

IPT MS+140bp area

• Belfius previously sold SNP paper in January via a well-received EUR500m 5y bullet (3.75% 1/29) at m/s +130, courtesy of a EUR2.9bn peak and final order book.
• That line was spotted in the comps list at i +97. With that, we saw fair value the context of m/s +low 100s to +105 area which sources on and off the deal broadly rubber stamped.

Nykredit Realkredit back again with Jan-2030 SNP

** Nykredit Realkredit A/S (rated A+/A by S&P/Fitch - both stable) has mandated Goldman Sachs International, ING, Morgan Stanley, Natixis, and Nykredit Bank for its forthcoming EUR benchmark long 5yr (10 January 2030) Fixed Rate Senior Non-Preferred transaction (expected ratings of BBB+/A by S&P/Fitch). Pay date 21 November.

IPT: MS+140bp area

• This marks the lender’s fifth sale of single currency SNP paper in 2024 having most recently brought a EUR500m Jul 2031 trade in September. The sale drew relatively tepid demand which was finalized at EUR785m after books peaked at EUR1.25bn during the execution process.
• Shorter on the curve is a EUR500m Sep 2029 line sold in March which also drew retrained final demand worth EUR735m. That line was spotted by leads at i +99 with an adjustment for the additional curve suggesting fair value on today’s sale around m/s +105 area.

Ticker Yrs to Mty Amt Out I-Spread Bid

NYKRE 3 7/8 07/09/29 4,7 € 500.000.000 99/

BPER Banca offering yield via PNC Mar-2030 AT1

** BPER Banca S.p.A (Ticker: BPEIM), rated Baa3 (Stable) / BBB- (Positive) / BBB- (Stable) / BBB (Positive) by Moody’s / S&P / Fitch / DBRS, has mandated Barclays and UBS Investment Bank as Joint Structuring Advisors, Global Coordinators and Joint Bookrunners and BNP Paribas, Deutsche Bank, Mediobanca and Morgan Stanley as Joint Bookrunners of its upcoming EUR500m (WNG) RegS Bearer dematerialised form Perp NC March-2030 AT1 transaction. The Notes are expected to be rated Ba3 / B+ by Moody’s / Fitch. Pay date 20 November. First Call Date: 20 March 2030.

IPTs: 7.000% area

• Follows the lender’s debut sale of AT1 paper in January which came in the form of a EUR500m PNC5.5 line that was a hit with investors who submitted EUR3bn of final orders.
• That deal has rallied strongly since launch, spotted by leads in the comps list at 108.375 on the bid side to yield 6.07% to call.
• The most recent Italian lender to sell AT1 paper was UniCredit on 9^th September where its EUR1bn PNC 6/32 line scooped a EUR2.8bn book.
• That was preceded in July by a EUR400m PNC7 sale from Banco BPM which attracted a similarly sized EUR2.85bn book.

Performance tracker of recent EUR benchmark deals

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