Commentary & Deal Flow

• There was no € IG supply today for the second session in a row, as participants watched the US payroll data which came in with a far higher number than expected (172,000 versus expectations of 88,0000). The heavy number for May effectively eradicated any remaining hopes of a Fed rate cut. The unemployment rate stayed the same at 4.3%.
• The sole primary transaction of today’s session was a £1bn covered offering from NatWest Bank.
• IG pipeline for Europe remains:
• • 1 x € FIG
  • 3 x € SSA
  • 1 x £ SSA

Euro IG (today)

NO SUPPLY

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

FIG

• National Westminster Bank Plc (exp. Issue ratings of Aaa / AAA by Moody’s & Fitch) announced a 5 year covered bond with guidance in the area of SONIA+52. As the sole trade of the day books were announced first at over £2bn. The deal launched at SONIA+47 for @1bn. Books pre-rec were £2.3bn (incl. £100m JLMs). The deal priced 5 tighter than IPTs & flat to secondaries.

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

NO SUPPLY

Week-to-date volumes:

US$ Reg S (today)

NO SUPPLY

Pending Deals & Mandates 

Euro (€)

• Monday, 1st June: Australian multinational general insurance & reinsurance company QBE Insurance Group Limited (A / A by S&P & Fitch), mandated Barclays, Crédit Agricole CIB, Deutsche Bank, JP Morgan & Natixis as JLMs to arrange a series of fixed-income investor meetings commencing Thursday 4th June. A potential €300m to €500m Regulation S Registered 11NC6 Tier 2 Subordinated issue may follow, subject to market conditions. The expected securities’ ratings are BBB+ (S&P) and BBB+ (Fitch).

• Friday, 22nd May: 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.
• Thursday, 28th May: 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.
• Monday, 1st June: The Basque Government (A2 / AA- / A+) mandated Deutsche Bank & ING to arrange a series of physical fixed-income investor meetings in Amsterdam & London on Wednesday 3rd & Thursday 4th of June, respectively, with the aim to present the Basque Government’s Industrial Strategy 2030 plan & the Basque Financial Alliance, a strong public-private framework, targeting investments in industrial companies with deep local roots in the Basque Region. Following the investor meetings, a € denominated benchmark bond issue may follow, subject to market conditions.

Sterling (£)

• Friday, 29th May: 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 5.25% 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

Transaction Details 

PRICED: National Westminster Bank Plc £1bn 5yr CB; SONIA+47bp

IGC European Market: Deal Flow - General

Reoffer: 5yr: SONIA+47bp / 100

Launched: 5yr: £1bn @ SONIA+47bp - Books £2.3bn+ (incl £100m JLM) pre rec
Book Update: Books £2bn+
Guidance: 5yr: SONIA+52a

• Issuer: National Westminster Bank Plc (Ticker: NWG)
• Issuer LEI: 213800IBT39XQ9C4CP71
• Guarantor: NatWest Covered Bonds Limited Liability Partnership
• Expected Issue Ratings: Aaa/AAA (Moody's/Fitch)
• Format: Reg S, Bearer, UK Regulated Covered Bond
• Currency: £
• Size: £1bn
• Pricing Date: 05-Jun-26
• Settlement Date: 17-Jun-26 (T+8)
• Maturity Date: 22-May-31 (soft bullet)
• Coupon: SONIA+47bps, Floating, Compounded Daily SONIA, 5 day lag, Quarterly, ACT/365F
• Reoffer Spread: SONIA+47bps
• Reoffer Price: 100
• Documentation: Issued under the Issuer’s €25bn Global Covered Bond Programme dated 27-Mar-26, as supplemented on 03-Jun-26
• Listing / Governing Law: London Stock Exchange's main market / English
• Denominations: £100k + 1k
• ISIN / Common Code: XS3405659833 / 340565983
• Joint Lead Managers: BMO Capital Markets, NatWest (B&D), Santander, Standard Chartered Bank
• Fees: The Joint Lead Managers will be paid a fee in connection with the transaction. Details of the fee may be available to investors upon request
• Selling Restrictions: As per the Base Prospectus
• Target Market: Manufacturer target market (MIFID II product governance and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document / CCI disclosure document has been prepared as not available to retail in the EEA or in the UK
• Advertisement: The base prospectus, as supplemented, is available at https://investors.natwestgroup.com/fixed-income-investors/covered-bonds.aspx and the final terms, when published will be available at https://www.londonstockexchange.com/
• Timing: ToE 16.09 UKT / FTT 16.30 UKT

Covered FRN
5 year (May 2031) @ SONIA+52 area 

Implied Spread for fresh 5 year @ SONIA+47

Priced at SONIA+47
NIC of 0

• Details correct at time of posting