Commentary & Deal Flow

• € IG supply for the week totalled €48.8bn from 34 issuers / 40 tranches (9 x Corporate, 17 x FIG & 8 x SSA).
• Today’s contribution was slight with only 1 FIG trade in €’s & 1 FIG trade in £
• Neither of today’s trades had been announced prior so we still have the 3 prior trades & one new addition from the UK Treasury. Going into the weekend the pipeline stands as follows.
• • 1 X corporate (MTR triple-tranche) & 2 SSA’s in €.
  • 2 X SSA (Kexim & the UK) in £. 
• A review of the week’s supply is as follows.
• • Corporate
  • • Total IG: €9bn
    • Avg. tranche size came in at €1bn
    • Avg. tightening from IPTs -34.1bps
    • Avg. cover 3.5 X
  • FIG
  • • Total IG: €12.8bn
    • Avg. tranche size came in at €753m
    • Avg. tightening from IPTs -25.8bps (unsecured - ) - €9.05bn
    • Avg. tightening from IPTs -5bps (covered - €3.75bn)
    • Avg. cover 2.2 X
  • SSA
  • • Total IG: €27bn
    • Avg. tranche size came in at €3.375bn
    • Avg. tightening from IPTs -3bps
    • Avg. cover 9.7 X
• No supply today in Swiss Franc or Reg S US$ market.

Euro IG (today)

FIG

• As the only issuer in € IG this morning, Swedbank Mortgage AB (exp. Issue ratings Aaa/AAA) announced a € benchmark, 7 year covered bond. The issue came with guidance in the area of MS+32. Books built to over €2.4bn (inc. €350m JLMs). In an otherwise quiet session deal terms were finalised early, with the trade sizing at €1bn & pricing 7bps tighter at MS+25.

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

FIG

• One of only two IG trades today came in sterling from Norway’s DNB Bank (exp. Issue ratings A2 / A by Moody’s & S&P). The borrower announced a benchmark, long 6NC5 senior non-preferred Green bond with IPTs in the area of mid Gilts +100. Books were in excess of #1.2bn (pre-rec) &v the deal priced at UKT+85, 15bps tighter than IPTs.

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

• None.

Week-to-date volumes:

US$ Reg S (today)

• None.

Pending Deals & Mandates 

Euro (€)

• On Tuesday (28th May), MTR Corporation Limited (AA+ / Aa3) mandated BNP Paribas, Crédit Agricole, Deutsche Bank, HSBC, JP Morgan & Societe Generale as Joint Global Coordinators, Joint Bookrunners & Joint Lead Managers, Bank of China (Hong Kong), Barclays, BofA Securities, Citigroup, ICBC (Asia), Morgan Stanley, Standard Chartered Bank & UBS as JLM’s to arrange a series of fixed income investor meetings commencing on Thursday the 28th of May. A proposed € benchmark comprising of 8, 12 & 20 year RegS (Category 2) Senior Unsecured Fixed Rate Green Notes. Societe Generale is the sole ESG Structuring Advisor. MTR has been Hong Kong’s low-carbon mass transit rail network provider for nearly 47 years, with a consistent 50%+ franchised public transport market share. MTR is listed on the Main Board of the Hong Kong Stock Exchange and is 74.45% owned by the Government of the Hong Kong SAR (AA+/Aa3). Building on its world-class railway services in Hong Kong, over the past 20 years MTR has taken its expertise in railway development and operations to major cities in Europe (UK and Sweden), Australia & Chinese Mainland. In Europe, MTR operated multiple flagship lines including Elizabeth Line, South Western Railway, Stockholm Metro, & Stockholm Pendeltåg.

• Bpifrance ESN Master FCT, a newly set up French fonds commun de titrisation, mandated (21st May) BNP Paribas & Bpifrance as co-Arrangers, BNP Paribas, Deutsche Bank & Natixis as Joint Bookrunners to arrange a series of fixed income investor calls starting on the 26th May 2026. An inaugural € European Secured Notes (“ESN”) transaction may follow, subject to market conditions.
• The German State of Saxony-Anhalt (Aa1 / AAA / AAA), mandated (27th May) DekaBank as the sole lead manager for its inaugural 2-year blockchain-based digital bond issuance (crypto security under German eWpG). A € bond, issued using SWIAT blockchain technology, will follow subject to market conditions.

Sterling (£)

• The United Kingdom (Aa3 / AA / AA- ), mandated Citi, Deutsche Bank, JP Morgan, Lloyds Bank Markets, & RBC CM to lead manage the syndicated re-opening of the 5 1/4% Treasury Gilt 2041 (ISIN code GB00BVP99897). The transaction is currently planned to take place in the week commencing 8th June 2026, subject to demand and market conditions
• On Tuesday (27th May), KEXIM - The Export-Import Bank of Korea (Aa2 / AA / AA-), mandated Deutsche Bank, HSBC & Nomura as JLM’s & Joint Bookrunners to arrange a series of fixed income investor calls commencing on May the 27th. A £ Reg S senior unsecured offering, with an expected tenor of 3 to 4 years, may follow subject to market conditions.

Transaction Details 

PRICED: DNB Bank ASA £600m Long 6NC5 Green SNP; UKT+85bp

IGC European Market: Deal Flow - General

Reoffer: Long 6NC5: UKT+85bp / 99.484 / 5.117%
Benchmark: Long 6NC5: UKT 0.25 31-Jul-31 @ 81.550 mid / 81.530 bid (HR 109%)

Final Books > £1.15bn. Peak book in excess of £1.2bn (pre-rec)

Launched: Long 6NC5: £600m @ UKT+85bp - Orderbooks in excess of £1.2bn (pre-rec)
Book Update: Books >£1bn
IPTs: Long 6NC5: UKT+100bp area

• Issuer: DNB Bank ASA (ticker: “DNBNO”)
• LEI Code: 549300GKFG0RYRRQ1414
• Issuer rating: Aa2 / AA- (Moody's (Stable) / S&P (Stable))
• Expected Issue rating: A2 / A (Moody’s / S&P)
• Status: Senior Non-Preferred Notes
• Format: Reg S Category 2 only, Bearer form, NGN
• Tenor: Long 6NC5 Fixed
• Currency & Size: £600m
• Pricing Date: 29-May-26
• Settlement Date: 05-Jun-26 (T+5)
• Maturity Date: 23-Jul-32
• Issuer Call: Subject to the provisions of Condition 7(i), on giving not less than five nor more than 15 days’ notice to the Noteholders in accordance with Condition 16, one-time call option, at par (in whole only and at the Issuer's discretion) with interest accrued to (but excluding) the Optional Redemption Date
• Optional Redemption Date / Reset Date: 23-Jul-31
• Reoffer: Mid UKT + 85bps / 99.484 / 5.117% s/a
• Coupon: Initial fixed rate of 5% per annum payable semi-annually in arrear from (and including) the Issue Date, commencing with a short first coupon of [●] per denomination on 23 July 2026, and [●] per denomination payable on each Interest Payment Date thereafter up to (but excluding) the Optional Redemption Date. If not redeemed on the Optional Redemption Date, the interest rate will be determined by on the basis of the reference bond rate + [●]bps, payable semi-annually in arrear.
• Benchmark: UKT 0.25 31-Jul-31 @ 81.550 mid / 81.530 bid (HR 109%)
• Interest Payment Dates: 23 January and 23 July in each year, commencing on 23 July 2026 and ending on the Maturity Date.
• First Interest Payment Date: 23-Jul-26
• Ranking: Direct, unconditional and unsecured obligations of the Issuer, and will at all times rank pari passu without any preference among themselves. In the event of a liquidation, dissolution or winding-up of the Issuer by way of public administration (except, in any such case, an Excluded Winding-up, as defined in the Terms and Conditions of the Notes), claims of the holders of Senior Non-Preferred Notes against the Issuer in respect of or arising under the Senior Non-Preferred Notes (including any amounts attributable to the Senior Non-Preferred Notes and any damages awarded for breach of any obligations thereunder) shall rank: (i) pari passu without any preference among themselves; (ii) pari passu with claims in respect of Non-Preferred Parity Securities and any other Statutory Non-Preferred Obligations, if any; (iii) in priority to claims in respect of Non-Preferred Junior Securities; and (iv) junior to any present or future claims of Senior Creditors.
• Redemption due to MREL Disqualification Event: If an MREL Disqualification Event (as defined in Condition 7(k)) occurs, the Issuer may, at its option, but subject to the provisions of Condition 7(i), on giving not less than nor more than 15 days' notice to the Agent and, in accordance with Condition 16, the Noteholders (which notice shall be irrevocable), at any time redeem all (but not some only) of the Notes at their Early Redemption Amount referred to in Condition 7(e) together (if appropriate) with interest accrued to (but excluding) the date of redemption. Upon the expiry of the relevant notice period, the Issuer shall redeem the Notes <GO>
• Variation or Substitution: If at any time an MREL Disqualification Event occurs and is continuing, or in order to ensure the effectiveness and enforceability of Condition 22, the Issuer may, subject to the provisions of Condition 7(i), (without any requirement for the consent or approval of the Noteholders) on giving not less than 5 nor more than 15 days' notice to the Agent and, in accordance with Condition 16, the Noteholders (which notice shall be irrevocable) either substitute all (but not some only) of the Notes for, or vary the terms of the Notes (including, without limitation, changing the governing law of Condition 22, from Norwegian law to English law) and/or the terms of the Agency Agreement so that they remain or, as appropriate, become, Qualifying MREL Securities (as defined in Condition 7(m)) <GO>
• Statutory Loss Absorption: Each Noteholder acknowledges and accepts to be bound by the exercise of Norwegian Statutory Loss Absorption Powers (as defined in Condition 22) by the Relevant Resolution Authority (as defined in Condition 22)
• Events of Default: As per Condition 10
• Redemption Price: 100%
• Documentation: DNB Bank’s EUR 45,000,000,000 Euro Medium Term Note Programme, Base Prospectus dated 13 April 2026.
• Business Days: London, T2
• ISIN: XS3400932599
• Denominations / Governing Law: £100k+100k / English law, except for (i) the provisions of Condition 2; (ii) the provisions of Condition 3; (iii) the provisions of Condition 4; (iv) the provisions of Condition 11; (v) the provisions of Condition 22; and (vi) any other write-down or conversion of the Notes in accordance with Norwegian law and regulation applicable to the Issuer from time to time, which in each case shall be governed by, and shall be construed in accordance with, Norwegian law
• Sales Restrictions: As per the Base Prospectus
• Listing: Euronext Dublin (regulated market)
• Use of Proceeds: The Notes are intended to constitute Green Bonds (as defined in the Base Prospectus). An amount equal to the net proceeds from the issue of the Notes is intended to finance or refinance, in whole or in part, a portfolio of Eligible Green Loans under the Issuer's Green Finance Framework (available on the Issuer's website). See the second and third paragraphs of Use of Proceeds in the Base Prospectus for further details
• Target market (MiFID II / UK MiFIR product governance): MiFID II / UK MiFIR professionals/ECPs-only/No PRIIPs KID – Manufacturer target market (MIFID II / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in EEA and in the UK
• Joint Lead Managers: Barclays (B&D), BMO Capital Markets, HSBC, TD Securities
• Timing: Priced, ToE 13:36 Ldn, FTT 13:50 Ldn

PRICED: Swedbank Mortgage AB (publ) €1bn 7yr CB; MS+25bp

IGC European Market: Deal Flow - General

Reoffer: 7yr: MS+25bp / 99.274 / 3.117%
Benchmark: 7yr: DBR 2.3% Feb-33 @ 97.12% / B+34.2bp, HR 104%

Final Books >€2.6bn (incl. €350m JLM). Peak book >€2.7bn (incl. €350m JLM)

Launched: 7yr: €1bn @ MS+25bp - Books >€2.7bn (incl. €350m JLM)
Book Update: Books in excess of €2.4bn (incl. €350m JLM)
Guidance: 7yr: MS+32a

• Issuer: Swedbank Mortgage AB (publ) (Ticker: SWEDA)
• LEI: 549300TJREQ7GHIXWR36
• Expected Issue Ratings: Aaa/AAA (Moody's/S&P)
• Format: Reg S Bearer S.O. Bonds evidenced by a Temporary Global S.O. Bond exchangeable for a Permanent Global S.O. Bond. TEFRA D Rules apply, no communications with or into the US or Canada (excluding Ontario)
• Status: Swedish Covered Bond; European Covered Bond (Premium); ECBC Covered Bond label compliant
• Size: €1bn
• Reoffer: MS+25bps / Yld 3.117% / Px 99.274
• Benchmark: DBR 2.3% Feb-33 (@ 97.12%) +34.2bps, HR 104%
• Settlement Date: 08-Jun-26
• Maturity Date: 08-Jun-33, Statutory Extended Final Maturity applicable
• Coupon: 3.000%, Fixed, Annual, Act/Act ICMA
• Interest Payment Dates: Payable annually in arrear on 8 June in each year, from (and including) 08-Jun-27 to (and including) the Maturity Date.
• Denominations: €100k + €1k
• Listing: Euronext Dublin (regulated)
• Governing Law: English law, save for Condition 3 (Status), which shall be governed by and construed in accordance with Swedish law, as per the Base Prospectus
• Business Days: T2
• Clearing: Euroclear / Clearstream
• Documentation: Issued under the Swedbank Mortgage AB (publ) EMTN Programme Base Prospectus dated 13-May-26 (the ‘Base Prospectus’)
• Fees: The Joint Bookrunners will be paid a fee by the Issuer in connection with the transaction
• Target Market: Manufacturer target market (EU MiFID II / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA PRIIPs key information document (KID) or disclosure document required by the FCA Product Disclosure Sourcebook (DISC) has been prepared as not deemed not within scope / not available to retail in EEA or in the UK
• Selling Restrictions: Per the Base Prospectus
• Base Prospectus: The Base Prospectus is available and the Final Terms, when published, will be available on the website of Euronext Dublin: https://www.euronext.com/en/markets/Dublin
• ISIN / Common Code: XS3400528116 / 340052811
• Bookrunners: Deutsche Bank AG, DZ BANK, HSBC, Natixis (B&D), Swedbank
• Timing: TOE 14:17 UKT / 15:17 CET, FTT 14:45 UKT / 15:45 CET

• Details correct at time of posting