FIG SNAPSHOT: Trio get week underway, pipeline grows

Three issuers are set to price single currency non-covered deals on Monday, firing the opening salvo in a week which is expected to deliver EUR8bn in new paper, according to the average estimate collected in our Friday survey.

That would mark a significant slowdown compared to last week’s EUR18bn total which easily outstripped the EUR14.5bn average estimate.

Last week’s total was given a last minute boost by a couple of Friday deals including a red-hot EUR2bn 11NC10 senior trade from JPMorgan where orders peaked at EUR11bn before slipping to “only” EUR7.5bn after 38bps was slashed from IPTs to leave the reoffer around 5bps through the estimated fv level. Put another way, the reoffer spread was just 3bps above where its existing NC 3/33 line was spotted. In secondary, despite the keen pricing level, JPM’s deal is bid around 2bps inside reoffer on Monday morning.

In all, last week’s EUR18bn of new paper attracted plenty of demand where the average cover ratio was comfortably over 3x, indicating that investors still have plenty of cash, and appetite, to support fresh supply as we move closer toward the European bank earnings season and associated blackouts.

Elsewhere, the pipeline has seen several new additions too.

Snapshot of Monday’s live deals

Nationwide Building Society go with 2-part EUR 4NC3 FRN & 11NC10 FIX SNP

** Nationwide Building Society (“NWIDE”), rated A1 (Stable) / A+ (Stable) / A+ (Stable) (Moody’s / S&P / Fitch), has mandated Barclays, BofA Securities, Citi, HSBC, Wells Fargo Securities as Joint Lead Managers for a EUR Benchmark two-part Reg S (Cat 2), Bearer, NGN, TEFRA D Senior Non-Preferred, direct and unsecured with EUR bmk 4NC3 FRN (Maturity Date Interest payment date falling on or nearest to 27 January 2029) and EUR bmk 11NC10 (Maturity Date Interest payment date falling on or nearest to 27 January 2036) Fixed-to-FRN tranches, exp ratings A3 / BBB+ / A (Moody’s / S&P / Fitch). Pay date 27 January.

IPTs

EUR bmk 4NC3 FRN @ 3mEUR+100 area

EUR bmk 11NC10 Fxd-to-FRN @ MS+160 area

• Monday's new 11nc10 line marks the UK lender’s first euro sale since bringing a EUR1bn 8nc7 SNP in July (3.834% 7/32-31) at i+ 115 into a EUR2.5bn book.
• That line is also Nationwide’s longest outstanding SNP and was spotted by leads in the comps list (below) at z+ 112.
• Using that as a basis, and then looking at the curve of UK peer HSBC, an adjustment for the additional duration would suggest fair value in the context of m/s + high 120s.

Jyske Bank refresh SNP curve with 6.25NC5.25 green

** Jyske Bank A/S (Ticker: JYBC), rated A+ (S&P), has mandated Danske Bank, Goldman Sachs International, ING, J.P. Morgan & Jyske Bank as Joint Bookrunners for a EUR Green Non-Preferred Senior Reg S Eurobond, Registered Form Notes due 29 April 2031, exp rating BBB+ (S&P). Pay date 29 January. Optional Redemption Date/Reset Date: 29 April 2030.

IPT: MS + 160bps area

• Jyske Bank last priced SNP paper in May via a EUR500m 6.25NC5.25 vanilla (4.125% 9/30-29) line courtesy of a relatively measured EUR1.075bn book
• That was preceded by a EUR500m 6nc5 green sale in Nov 2023 (4.875% 11/29-28) although the ethical tag did little to overtly stimulate demand with the final book pegged at EUR950m.
• Based on levels provided (below), fair value on the new 6.25nc5.25 line appears to be in the context of m/s +130 to low 130s.

NordLB creating SNP curve with new 3yr

** Norddeutsche Landesbank - Girozentrale, rated Aa2 (stable) / A+ (stable) (Moody’s / Fitch) has mandated Barclays, BNP Paribas, Deutsche Bank, NORD/LB and UniCredit on a EUR500m wng 04 February 2028 issue, expected ratings A1 / A+ (Moody’s / Fitch). Pay date 29 Jan. ISIN / WKN DE000NLB5AB4 / NLB5AB.

IPT MS+125bps area

• The sale follows a 5yr debut SNP launched in Sep (3.625% 9/29) which raised EUR500m at m/s +120 although proved something of a slow burner where final demand settled at EUR850m.
• Comps provided show that line is trading at a relatively wide-looking level of i+113 which is 9bps wide of a recent 5yr line from LBBW which matures some six-months later.
• Looking at the comps provided, fair value appears somewhat open to debate although sources closed to the trade were seeing the theoretical level in the context of m/s + mid 90s.

Fresh in the pipeline

** Achmea B.V. (“ACHMEA”) rated A (stable) /BBB+ (stable) by (Fitch/S&P), has mandated HSBC as Global Coordinator and ABN AMRO, Barclays, BBVA, BNP Paribas, Deutsche Bank & HSBC as Joint Bookrunners to arrange a series of fixed income investor calls on 20-Jan. A EUR 300 million (WNG) perpetual Restricted Tier 1 offering, resettable in July 2035, will follow subject to market conditions. The transaction is expected to be rated BBB by Fitch and BB+ by S&P. Comps here

** MBH Bank Nyrt., one of the leading banks in Hungary and the CEE region, rated Baa3 (stable) by Moody’s, has mandated Citi, Erste Group, ING, MBH Investment Bank and UniCredit as Joint Lead Managers to organize a series of fixed income investor calls commencing 20-Jan. A pre-recorded Global Investor Call will also be made available. A EUR denominated Benchmark RegS Senior Preferred Bond (MREL eligible) with a 5NC4 tenor may follow, subject to market conditions. The notes are expected to be rated Ba2 by Moody’s and will be issued under the Issuer's EUR 1.5bn EMTN programme. Comps here

** Istituto per il Credito Sportivo e Culturale, an Italian public development bank owned 80.4% by MEF and rated BBB- (Stable) / BBB (Positive) by S&P and DBRS, has mandated IMI-Intesa Sanpaolo as Sole Sustainability Coordinator and IMI-Intesa Sanpaolo, Morgan Stanley, Santander and UniCredit as Joint Bookrunners to arrange fixed-income investor calls 20-21 Jan. A potential Euro 300m, 5 years, RegS Bearer, Senior Unsecured Social Bond transaction is expected to follow in the near future, subject to market conditions. An amount equivalent to the net proceeds of the bonds will be allocated to finance and/or re-finance, in whole or in part, Eligible Social Assets, as defined within the Issuer's Social Bond Framework dated July 2022.

Performance tracker of recent EUR benchmark deals

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