Commentary & Deal Flow

• While the high grade new issue market could arguably have supported more issuance today, as it came to pass the European € IG primary supply totalled only €2.4bn for the day - 3 issuers / 4 tranches (2 x Corp & 1 x FIG).
• A breakdown of today’s primary supply is as follows.
• • Corporate
  • • Total IG: €1.65bn
    • Avg. tranche size €550m
    • Avg. IPT to Pricing -31.5bp
    • Avg. cover 2.67 X
  • FIG
  • • Total IG: €750m
    • Avg. tranche size €750m
    • Avg. IPT to Pricing -31.25bps (unsecured)
    • Avg. IPT to Pricing NA (covered)
    • Avg. cover 2.27 X
  • 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.
• In the Reg S $ market NRW Bank stepped forward with a 3 year FRN. Notably, this was the first European, SSA Reg S $ deal since its guarantor (the State of North Rhine-Westphalia) issued a $1.5bn 5 year on the 3rd of June. Having announced IPTs, the borrower was taking indications of interest with the trade slated to price tomorrow.
• The near empty pipeline re-filled today with 7 new borrowers announcing fresh mandates - mostly for Tuesday’s business.
• Pipeline:
• • 1 x € Corp (Green)
  • 2 x € FIG (1 x Tier 2 & 1 x Covered)
  • 4 x € SSA
  • 1 x $ Reg S
  • 1 x £ FIG (Covered)

Euro IG (today)

Corp

• Having mandated last Thursday, Toyota Motor Corporation (exp. Issue ratings of A+ / A1 by S&P & Moody’s), brought its dual-tranche, senior unsecured, sustainability issue. The short dated 4 year (29th March 2030) came with IPTs of MS+80 area, with an 8 year at MS+110 area. Both were €500m (wng). The trade launched at MS+45 & MS+80 respectively; with books first cited as being over €2.55bn for the 3.75 year & over €1.95bn for the 8 year. The deal priced €500m per tranche with final books in turn over €1.15bn & €1.5bn. Pricing tightened 35bps from IPTs on the short 4 year & by 30bps from IPTs on the 8 year.
• Selp Finance S.à r.l. (exp. Issue ratings of Baa2 / BBB+ by Moody’s & S&P); guaranteed by SEGRO European Logistics Partnership S.à r.l. The borrower is a 50/50 JV, created in 2013, between SEGRO (a major UK-based property investment & development company) & the Public Sector Pension Investment Board (PSP Investments), which is one of Canada's largest pension investment managers. The borrower announced a benchmark, 7 year senior unsecured offering with IPTs in the range of MS+145 to +150. Books indicated first as being over €2bn, when guidance was indicated at MS+120 (+/- 2bps). Books tightened to >€1.9bn (at guidance pre-rec). The deal was sized at €650m & priced at MS+118; 29.5bps tighter than the midpoint of IPTs. Final Books were over €1.75bn.

SSA

• Erste Group Bank AG (exp. Issue ratings of Aa3 / A+ / A+ by Moody’s, S&P & Fitch) announced a benchmark Perpetual NC7.3 (first call date 15th April 2033 / first reset date 15th Oct 2033). IPTs were in the range of 6.125% to 6.25%. Books were called early at over €2bn, rising to >€2.1bn. The deal sized at €750m & priced at 5.875%. Final books were >€1.7bn.

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)

• Early afternoon UKT, NRW Bank (rated Aa1 / AA / AAA / AAA by Moody's, S&P, Fitch & Scope), guaranteed by the German Federal State of North Rhine-Westphalia, hit the screen with a Reg S only benchmark. The 3 year (29th June 2029) offering had IPTs in the area of SOFR MS +27. The borrower is taking IOI’s with the trade is expected to price tomorrow.

Pending Deals & Mandates

Euro (€)

• Monday 22nd June: Suez SA (exp. Issue rating of BBB by Fitch); a prominent European savings & retirement services group, mandated BofA Securities & HSBC as Joint Global Coordinators & Structuring Agents, & Barclays, BNP Paribas, BofA Securities, Citi, HSBC & NatWest as JLM’s for its upcoming RegS Registered Form €500m (wng) 11.5 year, Fixed Rate Tier 2 transaction which is expected to launch in the near future, subject to market conditions.

• Monday 22nd June: Athora Holding Ltd (rated Baa2 by Moody’s); a global leading player in water & waste management, mandated Natixis, NatWest & Société Générale as Global Coordinators & Active Bookrunners as well as Natixis as sole ESG structurer to arrange a series of fixed income investor calls on Monday & Tuesday, the 2nd & 23rd of June. A Green 10 year fixed-rate, Reg S Bearer senior unsecured, €500m (exp) transaction is expected to follow, subject to market conditions.
• Monday 22nd June: Banco di Desio e della Brianza S.p.A (exp. Issue rating of AA+ by Fitch),  mandated BNP Paribas, IMI-Intesa Sanpaolo, NordLB, Santander & UniCredit as Joint Bookrunners to lead manage its forthcoming long 5 year (Jan 32) soft-bullet €350m (wng) Obbligazioni Bancarie Garantite Europee (‘OBG’ or Mortgage Covered Bonds). The transaction is expected to be launched & priced in the near future, subject to market conditions. The Covered Bond is backed by 100% Italian residential mortgages. The note is expected to be CRR Art. 129, LCR Level 2a, ECB repo and ECBC Covered Bond label compliant.

• 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.
• Monday 22nd June: The Kingdom of Denmark (rated Aaa / AAA / AAA by Moody's, S&P & Fitch), mandated Danske Bank, J.P. Morgan, Morgan Stanley & Nordea to lead manage its forthcoming 2 year (due 30th June 2028), fixed rate, € benchmark. The transaction will be launched in the near future, subject to market conditions. The issuer is available for calls with investors on request.
• Monday 22nd June: The Free & Hanseatic City of Hamburg (rated AAA by Fitch), mandated Barclays, DZ Bank, LBBW, Raiffeisen Bank International & TD Securities to lead manage its upcoming 10 year, €500m (wng) fixed rate, Landesschatzanweisung. Launch & pricing is expected in the near future, subject to market conditions.
• Monday 22nd June: KfW (rated Aaa / AAA / AAA by Moody's, S&P & Fitch); guaranteed by the Federal Republic of Germany, mandated Credit Agricole CIB, DekaBank, J.P. Morgan & Morgan Stanley to lead manage a benchmark tap of its 2.5% 15th October 2031 (ISIN DE000A383P48, immediate fungibility). Issue no VI/2026. Launch is expected in the near future, subject to market conditions. 

Sterling (£)

• Monday 22nd June: Standard Chartered Bank (Singapore) Limited (exp. Issue ratings of Aaa / AAA by Moody's & S&P), mandated Crédit Agricole CIB, Lloyds, NatWest, RBC Capital Markets, Santander & Standard Chartered Bank as JLM’s for a new £500m (wng), 3 year SONIA-Linked floating rate, RegS, soft-bullet Covered Bond offering. The transaction will be launched in the near future, subject to market conditions.

US$ Reg S ($)

• Monday 22nd June: NRW Bank (rated Aa1 / AA / AAA / AAA by Moody's, S&P, Fitch & Scope), guaranteed by the German Federal State of North Rhine-Westphalia. Announced a Reg S only benchmark. The 3 year (29th June 2029) offering had IPTs in the area of SOFR MS +27. The borrower is taking IOI’s with the trade expected to price Tuesday the 23rd of June.

Transaction Details 

PRICED: Erste Group Bank €750m PerpNC7.3 AT1; 5.875%

IGC European Market: Deal Flow - General

Reoffer: PerpNC7.3: 5.875% / 100

Final Books: >€1.75bn. Peak book >€2.1bn.

Launched: PerpNC7.3: €750m @ 5.875% - Books >€2.1bn
Book Update: Books above €2bn
IPTs: PerpNC7.3: 6.125-6.250%

• Issuer: Erste Group Bank AG (Ticker: ERSTBK, Country: AT)
• LEI: PQOH26KWDF7CG10L6792
• Instrument: EUR Undated Fixed to Fixed Resettable AT1 Notes
• Issuer Rating: Aa3 / A+ / A+ (positive/positive/stable) (Moody’s/S&P/Fitch)
• Expected Issue Rating: BBB- by S&P
• Status & Ranking: Direct, unsecured and subordinated obligations of the Issuer, (a) junior to (inter alia) all present and future unsubordinated instruments or obligations and Tier 2 instruments and instruments or obligations of the Issuer which rank senior to Tier 2 instruments, (b) pari passu among themselves and with all other present or future AT1 instruments and (c) senior to (inter alia) all present and future ordinary shares and any other CET1 instruments and other subordinated instruments or obligations of the Issuer ranking or expressed to rank pari passu with the ordinary shares of the Issuer and any other CET1 instruments.
• Form: Reg S Bearer for Austrian law purposes
• Currency / Size: €750m
• Tenor: Perpetual NC7.3
• Pricing Date: 22-Jun-26
• Issue Date: 29-Jun-26 (T+5)
• First Call Date: 15-Apr-33
• First Reset Date: 15-Oct-33
• Reoffer: 100.000 / 5.877% (S/A) / 5.963% (A)
• Distribution: Fixed rate of 5.875% p.a. on the Current Principal Amount payable semi-annually in arrear on each Distribution Payment Date from (and including) the Distribution Commencement Date to (but excluding) the First Reset Date. Thereafter, reset on each Reset Date based on the sum of the prevailing 5-year mid-market swap rate plus 307.5bps (being equal to the initial credit spread determined at pricing with no step up or other incentive to redeem) on the Current Principal Amount (converted to a semi-annual rate in a commercially reasonable manner), payable semi-annually in arrear on each Distribution Payment Date. "Reset Date" means the First Reset Date and each 5th anniversary thereof for as long as the Notes remain outstanding. "Reset Determination Date" means the second T2 Business Day prior to any Reset Date.
• Distribution Payment Dates: 15 April and October in each year, commencing 15-Oct-26 (short first coupon)
• Day Count Fraction: Actual/Actual (ICMA)
• Business Day Convention: Following Business Day Convention, unadjusted
• Business Days: T2 and Clearing Systems
• Cancellation of Distribution: The Issuer may at all times elect to cancel at its full discretion, in whole or in part, any payment of distributions on any Distribution Payment Date for an unlimited period and on a non-cumulative basis. Without prejudice to such full discretion of the Issuer, any payment of distributions on any Distribution Payment Date (and any Additional Amounts thereon) shall be excluded and cancelled mandatorily and automatically: (i) to the extent that the distribution and any Additional Amounts thereon together with any additional Relevant Distributions would exceed the available Distributable Items; or (ii) if and to the extent that the Competent Authority orders that all or part of the relevant distribution payment be cancelled; or (iii) if and to the extent another prohibition or restriction of distributions, or of such distribution when aggregated with any other Relevant Distributions, is imposed by law or any authority or any other restriction to make distributions exists under Applicable Supervisory Regulations, including but not limited to any limit resulting from any Maximum Distributable Amount and M-MDA/L-MDA as applicable.
• Trigger Event and Write Down: If it has been determined that: (i) the Group CET 1 Capital Ratio; and/or (ii) the Issuer CET 1 Capital Ratio has fallen to an amount that is lower than 5.125%, unpaid distributions accrued on the Current Principal Amount to but excluding the Write-Down Effective Date will be cancelled and the Issuer will (without the need for consent of Holders) reduce the Current Principal Amount of each Note by the relevant Write-down Amount with effect from the Write-Down Effective Date.
• Write Up: The Issuer may, at its sole discretion, write up the Current Principal Amount in whole or in part up to a maximum of the Original Principal Amount, provided that a positive Profit has been recorded for each of the Issuer and the Erste Regulatory Group, and subject to certain limitations.
• Optional Redemption: The Issuer may redeem the Notes in whole, but not in part at the Redemption Amount on (i) each Business Day during the period from and including 15-Apr-33 to but excluding the First Reset Date (six months par call); and (ii) the First Reset Date; and (iii) each Distribution Payment Date following the First Reset Date, subject to the conditions to redemption and repurchase including prior permission of the Competent Authority.
• Clean up Call: Yes (75%), subject to conditions described in the prospectus
• Tax / Regulatory Call: Yes, subject to conditions described in the prospectus
• Documentation: The Issuer will issue the Notes under its Additional Tier 1 Notes Programme dated 13-Nov-25, consisting of the securities note dated 13-Nov-25 (the "Securities Note") and the registration document dated 10-Jun-25 (the "Registration Document"), each as supplemented.
• Denoms/Listing/Law: €200,000 + €200,000 / Vienna (Official Market) / Austrian Law
• Clearing: Euroclear / Clearstream / OeKB
• ISIN: AT0000A3VRR8
• Joint Lead Managers: Citi, Credit Agricole CIB, Erste Group Bank AG (B&D), Goldman Sachs Bank Europe SE, Morgan Stanley, Société Générale
• Target Market: MiFID II product governance - professionals/ECPs-only (all distribution channels) / No EU PRIIPs KID or UK disclosure document required by the FCA Product Disclosure Sourcebook (DISC) will be prepared as not available to retail in the EEA or the UK / FCA CoCo restriction.
• Sales Restrictions: There are selling restrictions in relation to the EEA, the United Kingdom, the United States, Japan, Canada, Italy, Switzerland, Singapore and Hong Kong as described in the prospectus
• Advertisement: This announcement is an advertisement for the purposes of Regulation (EU) 2017/1129, as amended (the "Prospectus Regulation"). The Registration Document, the Securities Note, and any supplement are available for viewing at and when published the Final Terms will be available for viewing at https://www.erstegroup.com/en/about-us/erste-group-issues/prospekte/anleihen
• Timing: PRICED. TOE 17.05 CET / 16.05 UKT. FTT 17.30 CET / 16.30 UKT

PRICED: Toyota Motor Corp €1bn 3.75yr & 8yr Sust Sr Unsec; MS+45 & MS+80

IGC European Market: Deal Flow - General

Reoffer: 3.75yr: MS+45 / 100 / 3.233% 8yr: MS+80 / 100 / 3.714%
Benchmark: 3.75yr: DBR 0 15-Feb-30 @ 91.04 / B+62.5 / HR 107% 8yr: DBR 2.2 15-Feb-34 @ 95.62 / B+87.0 / HR 103%

3.75yr: Final Book €1.15bn (Peak >€2.55bn)
8yr: Final Book €1.5bn (Peak >€1.95bn)

Launched:
3.75yr: €500m @ MS+45bp - Books >€2.55bn
8yr: €500m @ MS+80bp - Books >€1.95bn

IPTs: 3.75yr: MS+80a 8yr: MS+110a

• Issuer: Toyota Motor Corporation
• Ticker: TOYOTA
• Country: Japan
• LEI: 5493006W3QUS5LMH6R84
• Expected Ratings: A1/A+ (Both stable, Moody's/S&P)
• Format/Ranking: Senior Unsecured, Reg S Registered, Sustainability Bonds
• Settlement: 29-Jun-26
• ISIN:
• • 3.75yr: XS3413988604
  • 8yr: XS3413988786
• Size:
• • 3.75yr: €500m
  • 8yr: €500m
• Maturity Date:
• • 3.75yr: 29-Mar-30
  • 8yr: 29-Jun-34
• Coupon:
• • 3.75yr: 3.2302% (Annual), Short 1st Coupon
  • 8yr: 3.714% (Annual)
• Reoffer:
• • 3.75yr: Price 100, Yield 3.233%, Spread MS+45, Spread vs. Bench B+62.5
  • 8yr: Price 100, Yield 3.714%, Spread MS+80, Spread vs. Bench B+87.0
• Optional Redemption:
• • 3.75yr: Make Whole Call (B+10), 1m Par Call
  • 8yr: Make Whole Call (B+15), 3m Par Call
• Documentation: Standalone Prospectus
• Minimum Denoms: €100,000 and integral multiples of €1,000 in excess thereof
• Listing: Singapore Exchange Securities Trading Limited (SGX-ST)
• Governing Law: English Law
• Sales to Canada: Yes. Offers/sales into Ontario/Alberta/British Columbia only, subject to compliance with applicable law
• Joint Bookrunners: J.P. Morgan (B&D), BofA Securities, Morgan Stanley, Barclays, BNP Paribas
• Use of Proceeds: Eligible Projects as defined in the issuer’s Preliminary Offering Circular for the offering dated 18-Jun-26
• Advertisement: The Offering Circular, when published, will be available on the website of the Singapore Stock Exchange https://www.sgx.com/
• Timing: PRICED. TOE 15:46 UKT, FTT 16:15 UKT

PRICED: SELP Finance Sarl €650m 7yr Sr Unsec; MS+118bp

IGC European Market: Deal Flow - General

Reoffer: 7yr: MS+118bp / 99.641 / 4.06%
Benchmark: 7yr: DBR 2.3 15-Feb-33 @ 97.09 / B+127.6 / HR 102%

Final Books: > €1.75bn. Peak Book: > €2bn (at guidance pre-rec)

Launched: 7yr: €650m @ MS+118bp - Orderbook > €2bn (at guidance pre-rec)
Guidance: 7yr: MS+120bp area (+/-2bps), will price within range - Orderbook > €2bn
IPTs: 7yr: MS+145-150bp

• Issuer: SELP Finance S.à r.l.
• Ticker: SEGPLP
• Country: LU
• LEI: 549300Y4VYEJE1MH6D45
• Guarantor: SEGRO European Logistics Partnership S.à r.l.
• Guarantor Rating: Baa2 (positive) by Moody’s
• Expected Issue Rating: Baa2 by Moody’s and BBB+ by Fitch
• Form and Status of the Notes: Registered (New Safekeeping Structure), Senior Unsecured
• Settlement Date: 29-Jun-26 (T+5)
• Maturity Date: 29-Jun-33
• Coupon: 4.000% Fixed Rate, Annual Act/Act (ICMA), Unadjusted, Following
• ISIN: XS3420388756
• Use of Proceeds: General corporate purposes, including the refinancing of existing indebtedness
• Covenants: Loan to Value: Consolidated Total Net Borrowings / Consolidated Adjusted Total Assets <= 60% (Semiannual Test)Interest Cover: Consolidated EBITDA / Net Finance Charges >= 1.5x (Semiannual Test)Secured Debt: Consolidated Priority Borrowings / Consolidated Total Assets <= 30% (Semiannual Test)
• MWC: Yes (B+20)
• Par Call: Yes, 3-month
• Change of Control Put Option: At par, subject to rating downgrade
• Redemption for Taxation Reasons: Applicable
• Negative Pledge: None
• Cross Acceleration: Yes
• Denominations: €100,000 + integral multiples of €1,000 in excess thereof
• Listing: Euronext Dublin (Regulated Market)
• Governing Law: English Law
• Documentation: Under the Issuer’s EUR 5 Billion EMTN Programme dated 31-Mar-26 (the “Programme”)
• Selling Restrictions: US Selling Restrictions: Reg S Cat 2; TEFRA not applicable. No sales to retail in the EEA or UK. Other selling restrictions as set out in the Programme
• Target Market: Manufacturer target market (UK MiFIR / MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA PRIIPs key information document (KID) or UK PRIIPs KID or CCI product summary has been prepared as not available to retail investors in the EEA or the UK
• Joint Lead Managers: Bank of China, BNP Paribas, NatWest (B&D), and Santander
• Clearing: Euroclear / Clearstream
• Advertisement: The Base Prospectus is available at Euro Medium Term Note Programme – SELP and the Final Terms, when published, will be available at https://live.euronext.com/en
• Marketing: URL: https://dealroadshow.com Entry Code: CAIRO26IP Direct Link: https://dealroadshow.com/e/CAIRO26IP
• Timing: TOE 15.02 UKT / 16.02 CET | FTT 15.20 UKT / 16.20 CET

• Details correct at time of posting