Commentary & Deal Flow

• Supply was exclusively financial today in the European € IG primary markets with €2.45bn pricing from 4 issuers / 4 tranches (4 x FIG).
• Book sizes & NIC’s today reflected the quiet mood out there. While arguably a ‘risk-on’ day, both the buy-side & borrowers alike appeared to have reached a tipping point today, needing to ‘take stock’ of recent events. In recent days we have had a multitude of major geo-political events & pivots in Central Bank policies & outlooks. No surprises then that participants require a moment to digest & reflect on both funding & investment strategies. 
• Tomorrow is a US holiday - ‘Juneteenth’.
• A breakdown of today’s primary supply is as follows.
• • Corporate
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA
    • Avg. cover NA
  • FIG
  • • Total IG: €2.45bn
    • Avg. tranche size €613m
    • Avg. IPT to Pricing -27.5bps (unsecured) - €950mn
    • Avg. IPT to Pricing -5bps (covered) - €1.5bn
    • Avg. cover 1.6 X (no books for Vittoria)
  • SSA
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA
    • Avg. cover NA

• Both Sterling IG & Swiss Franc markets were quiet today with zero new issues.
• The pipeline, having been mostly cleared, saw a new corporate addition with Toyota announcing investor calls for a potential €1bn, senior unsecured, dual-tranche (speculation that this seems more likely slated for Monday, than tomorrow). That aside the Saxony-Anhalt trade remains slated for the week of the 29th of June.
• Pipeline:
• • 1 s Corp (dual-tranche)
  • 1 x € SSA

Euro IG (today)

FIG

• UniCredit Bank Austria AG (exp issue rating of Aaa by Moody’s) announced a Mortgage Covered Bond, European Covered Bond (Premium). The 6 year benchmark came with IPTs in the area of MS+32. Books werre first called over €1.2bn (inc. €170m JLMs), rising to over €1.25bn. Spread set at MS+27; 5 tighter than IPTs (1 or 2 bps less than has been the recent trend). Pricing at this level the trade offered investors a NIC of 2bps & the deal sized at €750m. Final books were over €1.1bn good at re-offer (inc. €170m JLMs).
• Caisse de Refinancement de l’Habitat - CRH Corp (exp. Issue ratings of Aaa / AAA by Moody’s & Fitch) brought a 7 year benchmark covered issue (EU harmonisation label European Covered Bond) with guidance of MS+43 area. Books initially said to be above €1.5bn (inc. €525m JLMs). Expected size was announced as being €750m & spread set 5 tighter than IPTs (like Unicredit) at MS+38. €750m was the final size & it priced at MS+38. At this level buyers gained 1bp of NIC. Final books were said to be the same as first announced.
• Bank of Montreal (exp. Issue ratings A2 / A- / AA- by Moody’s, S&P & Fitch) announced early with a benchmark, senior unsecured, long 4NC3 (15th October 2030) bail-in able fixed to floating offering with IPTs of MS+85 area. Books first called over €1bn, rising to >€1.5bn (inc. €100m JLMs). The trade sized at €750m & priced at MS+60. Final books were >€1.15bn (inc. €200m JLMs).
• Italian insurer Vittoria Assicurazioni S.p.A. (exp issue rating of BBB by Fitch) brought a €200m 10 year Tier 2 issue with IPTs in the area of MS+210. While no books were published the trade launched & priced at MS+180; 30bps tighter than IPTs.

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• No Supply

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 (€)

• Thursday, 18th May: Toyota Motor Corporation (exp. Issue ratings of A+ / A1 by S&P & Moody’s), mandated JP Morgan, BofA Securities, Morgan Stanley, Barclays, & BNP Paribas to arrange a series of fixed income investor conference calls in Europe commencing on 18th June, 2026. JP Morgan will be coordinating logistics. An inaugural transaction of Reg. S Registered, fixed rate, senior unsecured € bonds (sustainability bonds) with maturity of short 4 year & 8 year, each €500m will 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). On Friday the 12th of June, an update was provided, with the issuer targeting an expected €100m. The lead manager made itself available for meetings/calls on request. The issuer is targeting the week of 29th June, subject to market conditions.

Transaction Details 

PRICED: UniCredit Bank Austria €750m 6yr CB; MS+27bp

IGC European Market: Deal Flow - General

Reoffer: 6yr: MS+27bp / 99.369 / 3.117%
Benchmark: 6yr: DBR 0% 15-Feb-32 @ 85.960 / B+40.4bp / HR 114%

Final books over €1.1bn (incl. €170m JLMs). Peak book over €1.25bn+

Launched: 6yr: €750m @ MS+27bp - Books over €1.1bn (incl. €170m JLMs)
Spread set at: 6yr: MS+27bp - Books over €1.25bn+ (incl. €170m JLMs)
Book Update: Books over €1.2bn+ (incl. €170m JLMs)
Guidance: 6yr: MS+32a

• Issuer: UniCredit Bank Austria AG [Ticker: BACA]
• LEI: D1HEB8VEU6D9M8ZUXG17
• Issue Type: Mortgage Covered Bond, European Covered Bond (Premium), ECBC Covered Bond Label compliant
• Format: Regulation S, Bearer form
• Issue Rating: Aaa by Moody’s exp.
• Compliance: CRR Art.129 and Solvency II (intended), LCR Level 1
• Size: €750m
• Coupon: 3%, Fixed, annual, act/act ICMA
• Settlement Date: 25-Jun-26 (T+5)
• Maturity: 25-Jun-32 (Soft Bullet)
• Reoffer: MS+ 27bps / 99.369% / 3.117 %
• Benchmark: DBR 0% 15-Feb-32 +40.4bps (Cash Price 85.960%, HR 114%)
• Joint Lead Managers: ABN AMRO, Erste Group, Helaba, Nordea, Raiffeisen Bank International, Scotiabank, and UniCredit (B&D)
• Listing: Vienna, Amtlicher Handel
• Documentation: Under the issuer’s EUR 40bn EMTN Programme dated 23-Mar-26
• Target market: Manufacturer target market (MIFID II and UK MIFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA PRIIPs Key Information Document (KID) or UK PRIIPs KID/CCI product summary has been prepared as not available to retail in EEA or the UK.
• Fees: The Banks will be paid a fee by the Issuer in respect of this transaction
• Denominations/Law: 100k + 100k / Austrian Law
• ISIN/WKN: AT000B050000 / A4EW2W
• Advertisement: The base prospectus is available at: https://www.bankaustria.at/en/about-us-issues-under-base-prospectuses-base-prospectuses.jsp
• Timing: Priced: TOE: 14.01CET; 13.01UKT // FFT: 14.30 CET; 13.30UKT

Covered

6yr (June 2032) @ MS+32 area

Implied Spread for fresh 6yr @ MS+25

Priced at MS+27
NIC of +2

PRICED: Bank of Montreal €750m Long 4NC3 Sr Unsec FXD/FRN; MS+60bp

IGC European Market: Deal Flow - General

Reoffer: Long 4NC3: MS+60bp / 99.929 / 3.402%
Benchmark: Long 4NC3: OBL 2.5 11-Oct-29 #190 @ 99.57 (2.635%) +76.7; HR 99%

Tranche 1 (Long 4NC3 FXF): Final books €1.15bn+ (inc. €200m JLM). Peak book €1.5bn+ (incl. €100m JLM)

Launched: Long 4NC3: €750m @ MS+60bp - Orderbook €1.5bn+ (incl €100m JLM)
Book Update: Orderbooks €1bn+
IPTs: Long 4NC3: MS+85a

• Issuer: Bank of Montreal
• LEI Number: NQQ6HPCNCCU6TUTQYE16
• Form of Notes: Senior Unsecured, Reg S, EUR MTN, Bearer, New Global Note, TEFRA D
• Expected Issue Ratings: A2/A-/AA- (Moody’s/S&P/Fitch)
• Tenor: Long 4NC3 Fixed-to-floating
• Size: €750m
• Settlement: 25-Jun-26
• Maturity: 15-Oct-30
• Optional Redemption Date: 15-Oct-29
• Coupon: 3.375% per annum, payable annually in arrear, Act/Act (ICMA), until the Optional Redemption Date. If not redeemed on the Optional Redemption Date, quarterly coupon of 3 month EURIBOR +60 bps, quarterly, Act/360
• First Interest Payment Date: 15-Oct-26 (short first coupon), subject to adjustment according to the Business Day Convention
• Interest Payment Dates: Annually on 15 October from (and excluding) the Settlement to (and including) the Optional Redemption Date. From (but excluding) the Optional Redemption Date to (and including) the Maturity Date, 15-Jan-30, 15-Apr-30, 15-Jul-30 and 15-Oct-30.
• Reoffer: MS+60 / 99.929 / 3.402%
• Benchmark: OBL 2.5 11-Oct-29 #190 @ 99.57 (2.635%) +76.7; HR 99%
• Use of Proceeds: General banking purposes (as described under the section entitled “Use of Proceeds” in the Prospectus)
• Target Market: MiFID II / UK MiFIR professionals/ ECPs-only
• Governing Law: Province of Ontario and the federal laws of Canada applicable therein
• Listing / Denom: London Regulated Market / €100,000 x €1,000
• Clearing: Euroclear and Clearstream
• Documentation: The base prospectus in respect of the Bank’s US$40,000,000,000 Note Issuance Programme dated 27-Jun-25, as supplemented by the supplementary prospectuses dated 26-Aug-25, 11-Dec-25, 02-Mar-26 and 27-May-26 (together, the “Prospectus”)
• Joint Lead Managers: BMO Capital Markets (B&D), BNP Paribas, Commerzbank, DZ BANK, Nordea, UBS Investment Bank
• Fee: Joint Lead Managers will be paid a fee in connection to the transaction
• ISIN / Common Code: XS3420382049 / 342038204
• Timing: Priced, ToE 15:10 CET, FTT 15:35 CET
• Bail-inable Status: The Senior Notes are Bail-inable. Bail-inable notes are subject to conversion in whole or in part – by means of a transaction or series of transactions and in one or more steps – into common shares of the Bank or any of its affiliates under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act (Canada) (the “CDIC Act”) - and to variation or extinguishment in consequence, and subject to the application of the laws of the Province of Ontario and the federal laws of Canada applicable therein in respect of the operation of the CDIC Act with respect to the Senior Notes. For a description of Canadian bank resolution powers and the consequent risk factors attaching to Bail-inable notes, reference is made to the Prospectus
• Advertisement: The Prospectus and applicable Final Terms (when published) will be available on the website of the National Storage Mechanism at https://data.fca.org.uk/#/nsm/nationalstoragemechanism under “Bank of Montreal”
• Stabilization: FCA/ICMA

BailIn Fixed to FloatingLong 4NC3 (15th October 2030) @ MS+85 area

Implied Spread for fresh Long 4NC3 @ MS+54

Priced at MS+60
NIC of +6

PRICED: Caisse de Refinancement de l’Habitat €750m 7yr CB; MS+38bp

IGC European Market: Deal Flow - General

Reoffer: 7yr: MS+38bp / 99.969 / 3.255%
Benchmark: 7yr: DBR 2.3 15-Feb-33 @ 97.16 / B+48.3bp / HR 105%

Final Books: Above €1.5bn (incl. €525m JLM)

Launched: 7yr: €750m @ MS+38bp - Books above €1.5bn (incl. €525m JLM)
Spread set at: 7yr: MS+38bp - Books above €1.5bn (incl. €525m JLM)
Guidance: 7yr: MS+43a

• Issuer: Caisse de Refinancement de l’Habitat
• LEI: 969500TVVZM86W7W5I94
• ISIN: FR0014019DU6
• Type: Obligations Foncieres - ECB Eligible – Reg S Bearer Category 2, dematerialised format – TEFRA not applicable – ECBC Covered. Bond Label - EU harmonisation label European Covered Bond (Premium) / CRD IV Compliant
• Ratings: Aaa/AAA (Moody's/Fitch)
• Settlement: 29-Jun-26 (T+7)
• Maturity: 29-Jun-33
• Size: €750m
• Tenor: 7 year - Soft bullet
• Reoffer: MS+ 38 bps / 3.255% / 99.969
• Benchmark: DBR 2.3 15-Feb-33 + 48.3bps (97.16 / HR: 105%)
• Coupon: 3.250%, annual, Act/Act ICMA
• Listing/Law/Denoms: Euronext Paris / French Law / €100,000+€100,000
• Documentation: Issuer’s EMTN Programme dated 20-Feb-26 and supplemented 11-May-26 and 12-Jun-26
• Fees: The Banks will be paid a fee by the Issuer in relation to the transaction
• Bookrunners: Barclays, Commerzbank (B&D), Crédit Agricole CIB, Natixis, Société Générale and UBS
• MIFID/MIFIR II – Target Market: Manufacturer target market (MIFID II/UK MiFIR product governance) is eligible counterparties and professional clients only (the following distribution channels: investment advice, portfolio management, non-advised sales). No EEA PRIIPs KID or UK PRIIPs KID/CCI product summary has been prepared as not available to retail in EEA and the UK
• Timing: Priced. TOE 15.03 CET / FTT 15.25 CET
• Advertisement: The Base Prospectus, any supplements thereto, and the Final Terms (when published) are available at http://www.crh-bonds.com/Prospectus/Listing_Prospectus.html

Covered

7yr (June 2033) @ MS+43 area

Implied Spread for fresh 7yr @ MS+37

Priced at MS+38
NIC of +1

PRICED: Vittoria Assicurazioni €200m 10yr T2; MS+180bp

IGC European Market: Deal Flow - General

Reoffer: 10yr: MS+180bp / 100 / 4.782%
Benchmark: 10yr: DBR 2.9% 15-Feb-36 @ B+184.9

Final Books: Above €750m (excluding JLM interest). Peak book above €850m (excluding JLM interest)

Launched: 10yr: €200m @ MS+180bp - Books above €850m (excluding JLM interest)
IPTs: 10yr: MS+210a

• Issuer: Vittoria Assicurazioni SpA
• Ticker: VITTAS
• Issuer Rating: A (Stable) by Fitch
• Expected Issue Ratings: BBB by Fitch
• Format: Reg S CAT2, bearer, subordinated note, Tier 2
• Size: €200m
• Settlement: 25-Jun-26
• Maturity Date: 25-Jun-36
• Coupon: 4.782%, annual, act/act ICMA
• Use of Proceeds: General purposes (including to refinance existing indebtedness) and for an efficient management of the Company's regulatory capital requirements
• Calls: Tax changes call, regulatory / capital disqualification call
• Denominations: €100k+1k
• ISIN: XS3402829652
• Sole Bookrunner: MS (B&D)
• FTT: 1:45pm London

• To view the LIVE / REAL TIME European IG pipeline please click here.
• Details correct at time of posting