Commentary & Deal Flow

• Supply today was heavily skewed towards SSA’s, across €, £, Chf.
• European € IG primary supply totaled €3bn from 4 issuers via 4 tranches (2 x Corp, 1 x SSA).
• While today’s triple tranche € offering from the People’s Republic of China is not counted within our European IG data (APAC data), it is worthy of note as it was the largest € deal the borrower had ever issued, pricing a collective €5bn from a peak book of €23bn.
• A breakdown of today’s primary supply is as follows.
• • Corporate
  • • Total IG: €2bn
    • Avg. tranche size €667m
    • Avg. IPT to Pricing -31.33bp
    • Avg. cover 2.65 X
  • FIG
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA (unsecured)
    • Avg. IPT to Pricing NA (covered)
    • Avg. cover NA
  • SSA
  • • Total IG: €1bn
    • Avg. tranche size €1bn
    • Avg. IPT to Pricing -1bp
    • Avg. cover 1.95 X

• Sterling IG was active with 2 SSA issuers delivering a total of £1.3bn from 2 tranches; one of which was a green tap.
• The international Swiss Franc IG market also activity again, with 2 issuers (1 x FIG & 1 x SSA) collectively pricing Chf280m via 2 tranches.
• No issuance today in the Reg S $ market.
• The pipeline for this week is empty, with tomorrow tee’ing up to be a ‘no-deal’ Friday (but anything’s possible). We still of course have the small Saxony-Anhalt digital trade slated for next week.
• Pipeline:
• • 1 x € SSA (next week's business)

Euro IG (today)

Corp

• Schneider Electric SE (rated A2 / A by Moody’s & S&P), announced a dual-tranche senior, unsecured € benchmark. The 2 year FRN came with IPTs of 3mth Euribor +55 to +60, while the long 7 year (1st December 2033) carried IPTs of MS+90 to 95. Combined books first reported at over €5.2bn pre-rec (split >€2.3bn & >€2.9bn respectively). Guidance for the FRN came in at 3mth €+30, with the long 7 year at MS+60 area (+/- 2bps wpir). A maximum size on the total trade was put at €1.5bn. Books sharpened to >€1.75bn & >€2.1bn as the floater sized at €800m at 3mth €+30; while the €700m long 7 year offered up MS+58. The trade priced on those terms giving investors a NIC of 1bp on both tranches. Final books were >€1.55bn for the floater & >€2bn for the Dec 33’s.
• Air France-KLM SA (exp. Issue ratings of BB+ / BBB- by S&P & Fitch) brought a €500m (wng) 5 year offering which carried IPTs in the area of MS+190. Books came in over €2.1bn (pre-rec), with guidance set at MS+160 area (+/- 2bps wpir). Books pre-rec were above €1.75bn, good at the tight end of guidance. Spread set at MS+158, some 32bps tighter than IPTs. Pricing at this level at the original €500m size it came a basis point through secondaries. Final books were over €1.75bn.

SSA

• Having been announced yesterday, the German State of Hesse (rated AA+ / AAA by S&P & Scope), hit the screens early with its anticipated €1bn (wng) fixed rate Landesschatzanweisung, senior unsecured 7 year (6th July 2033). Guidance came in the area of MS+18. Orderbooks first touted at over €1.6bn (inc. €375m JLMs), growing to over €1.75bn. Spread set at MS+17. Books closed in excess of €1.95bn (inc. €375m JLMs). The deal priced €1bn at that MS+17 level.

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

SSA

• The Province of Quebec (rated Aa2 / A+ / AA- by Moody’s, S&P & Fitch), announced a Reg S benchmark 5 year trade with guidance of SONIA MS+47 area. Books were in excess of £1.8bn (exc. JLMs). Spread set 2bps tighter than IPTs at SONIA MS+45.
• KfW (rated Aaa / AAA / AAA by Moody’s, S&P & Scope), guaranteed by the Federal Republic of Germany, brought a £300m tap of their existing senior unsecured Green 15th February 2030 issue (initial size of £500m). Spread on the tap was set at SONIA MS+25.

Week-to-date volumes:

Year-to-date volumes

Swiss Franc IG (today)

FIG

• Crédit Agricole S.A (exp. Issue ratings of Baa1 / BBB+ / A- by Moody’s, S&P & Fitch) announced a 10NC5 Tier 2 offering with an initial size of Chf100m. Initial spread talk was SARON MS+125 to +130. Guidance came in at SARON MS+128 to +130 (wpir), when size was elevated to Chf125m. Spread set half a basis point from the mid of guidance at MS+128 & the trade priced at that level with a final size of Chf160m.

SSA

• Finland’s Municipality Finance Plc [aka MuniFin] (exp. Issue ratings of Aa1 / AA+ by Moody’s & S&P) brought a Chf100m 10 year Green issue with initial spread talk of SARON MS+26 area. The deal priced Chf120m comfortably before noon at the SARON MS+26 level.

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates

Euro (€)

• 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: Federal State of Hesse €1bn 7yr Sr Unsec; MS+17bp

IGC European Market: Deal Flow - SSA

Reoffer: 7yr: MS+17bp / 99.383 / 2.974%
Benchmark: 7yr: DBR 2.3 15-Feb-33 @ 97.61 / B+27.7 / HR 105%

Final Books: in excess of €1.95bn (incl. €375m JLM interest)

Launched: 7yr: €1bn @ MS+17bp - Orderbooks in excess of €1.75bn (incl. €375m JLM interest)
Book Update: Orderbooks in excess of €1.6bn (incl. €375m JLM interest)
Guidance: 7yr: MS+18a

• Issuer: Federal State of Hesse
• Ticker: HESSEN
• Issuer Rating: AA+ (stable) S&P / AAA (stable) Scope
• Status: Landesschatzanweisung (Senior, Unsecured, Unsubordinated, RW 0%)
• Size: €1bn
• Maturity: 06-Jul-33
• Settlement: 06-Jul-26 (T+7)
• Reoffer: MS + 17bps / 99.383% / 2.974%
• Benchmark Reference: DBR 2.3 15-Feb-33 (DE000BU2Z007) +27.7bps (97.610% / 2.697% / HR 105%)
• Coupon: fixed 2.875% p.a., act/act (ICMA), annually on July 6
• Law/List/Denoms: German / Frankfurt / 1k
• Joint Leads: Barclays, Commerzbank (B&D), Credit Agricole CIB, Danske Bank, DZ BANK, LBBW
• Fees: The Joint Bookrunners will be paid a fee in connection to the transaction (MIFID II)
• Target Market: Manufacturer target market (MiFID II product governance) is retail, eligible counterparties and professional clients (all distribution channels)
• ISIN/WKN/Series: DE000A1RQFG2 / A1RQFG / 2607
• Timing: PRICED. TOE 13:22 CET, FTT immediately

PRICED: Crédit Agricole S.A. CHF 160mm 10NC5 T2; SARON MS+128bp

IGC European Market: Deal Flow - General

Reoffer: 10NC5: SARON MS+128bp / 100 / 1.5075%
Benchmark: 10NC5: Govt.+142bp

Spread set at: 10NC5: SARON MS+128bp
Guidance: 10NC5: SARON MS+128/130bp
IPTs: 10NC5: SARON MS+125/130bp

• Issuer: Crédit Agricole S.A. (Ticker: ACAFP)
• Issuer Domicile: France
• Format: Public Fixed Rate Notes
• Status: Subordinated Notes, intended to be treated as Tier 2 capital
• Type: Subordinated Fixed Resettable Tier 2 Notes. The Subordinated Notes (being those Notes which the relevant Final Terms specify as being Subordinated Notes) are issued pursuant to the provisions of Article L.228-97 of the French Code de commerce and are subordinated instruments as provided for in Article L.613-30-3-I-5° of the French Code monétaire et financier. Ranking as per Condition 3(b) “Subordinated Notes” in the Terms and Conditions of the Notes.
• Issuer Ratings: A1/A+/AA- (Moody's/S&P/Fitch)
• Expected Issue Ratings: Baa1/BBB+/A- (Moody's/S&P/Fitch)
• Size: CHF 160mm
• Coupon: 1.5075% p.a.
• Tenor: 10NC5
• Settlement Date: 09-Jul-26
• Optional Redemption and Reset Date: 09-Jul-31
• Maturity Date: 09-Jul-36
• Reoffer Spread/Yield: SARON MS +128.0 / YTM 1.5075%
• Issue Price: 100
• ISIN / Security Number: CH1571219406 / 157121940
• Lead Manager(s): DB, UBS (JLB), CACIB (JLNB)
• SNB Repo-eligibility: At the discretion of the SNB, expected no
• Documentation: The terms set out in herein are subject entirely to the terms and conditions set forth in the final terms (the “Final Terms”) dated on or about the Issue Date in connection with the Euro Medium Term Note Programme of Crédit Agricole S.A dated 2 April 2026 as supplemented from time to time (the “Base Prospectus”, together with the Final Terms, the “Notes Documentation”)
• FinSA Prospectus: The Base prospectus and supplements thereto have been filed with SIX for automatic acceptance pursuant to article 54(2) of the FinSA
• Governing Law: French
• Covenants: PP
• SIX Listing: 07-Jul-26
• Denomination: CHF 100'000 and multiples thereof
• Sales Restrictions: As per the EMTN Programme
• Target Market: Manufacturer target market (MiFID II / UK MIFIR product governance) is eligible counterparties, and professional clients and retail clients (Switzerland only) type of clients(all distribution channels). Prohibition of Sales to EEA/UK Retail Investors restrictions apply.

PRICED: Municipality Finance Plc CHF 120m 10yr Green Sr Unsec; SARON MS+26

IGC European Market: Deal Flow - SSA

Reoffer: 10yr: SARON MS+26 / 100 / 0.77%
Benchmark: 10yr: Govt +46.8bp

Launched: 10yr: CHF 120m @ SARON MS+26
Size Update: Min size CHF 115m
IPTs: 10yr: SARON MS+26a - Min size CHF 100m

• Issuer: Municipality Finance Plc (Ticker: KUNTA)
• Issuer Domicile: Finland
• Domestic / Foreign: Foreign
• Format: Public Fixed-Rate Notes
• Ranking: Senior unsecured
• Issuer Rating: Aa1 (stable) by Moody’s / AA+ (negative) by S&P
• Instrument Rating (exp): Aa1 by Moody’s / AA+ by S&P
• Size: CHF 120m
• Settlement: 14-Jul-26
• Maturity Date: 14-Jul-36
• Coupon: 0.7700% p.a. (30/360, following unadj.)
• Reoffer Spread/Yield: SARON MS +26.0 / YTM 0.7700% / Govt +46.8
• Reoffer Price: 100.000%
• ISIN / Valor: CH1581452484 / 158 145 248
• Lead Manager: Deutsche Bank
• SNB Repo-eligibility: At the discretion of the SNB, expected yes (HQLA Level 1)
• Documentation: Off the Issuer’s €50bn EMTN Programme dated 07-May-26
• FinSA Prospectus: Delayed prospectus approval in accordance with Article 51(2) FinSA
• Governing Law: English law
• Covenants: PP, NP, XD
• Listing: SIX (on or about 10-Jul-26)
• Use of Proceeds: The proceeds of the issue of the Notes will be used by the Issuer in accordance with the Municipal Guarantee Board Act, as amended. In addition, an amount equal to the proceeds of the issue of the Notes will be used and earmarked in accordance with the Issuer's Green Bond Framework dated August 2025.
• Denominations: CHF 5,000 and multiples thereof
• Selling Restrictions: As described in detail in the Issuer’s Documentation. In particular, United States, US persons, UK, Japan, Hong Kong, France, Belgium, Singapore, Canada, Italy, in accordance with the Information Memorandum. RegS TEFRA D Rules apply, no communications with or into the US.
• Target Market: Target Market as defined by the manufacturer domiciled in the EEA: Eligible counterparties and professional clients (all channels for distribution), subject to applicable selling restrictions. Public Offering in Switzerland only.

PRICED: KfW £300m Feb-30 Green Sr Unsec; SONIA MS+25bp

IGC European Market: Deal Flow - SSA

Reoffer: Feb-30: SONIA MS+25bp / 99.999 / 4.244%
Benchmark: Feb-30: UKT 4 3/8 03-Jul-30 @ 100.61 / B+0.6bp / HR 99%

Spread Set: Feb-30: £300m @ SONIA MS+25bp

• Issuer: KfW
• Status: Guaranteed by the Federal Republic of Germany
• Ratings: Aaa/AAA/AAA (all stable) (Moody's/S&P/Scope)
• Format: Senior, Unsecured, Reg S Bearer
• ESG: Green
• Tap Size: £300m
• Current o/s: £500m
• New o/s: £800m
• Settlement: 02-Jul-26 (T+5)
• Maturity: 15-Feb-30
• Spread: SONIA MS (A, A/365) +25bp
• Coupon: 4.250%, Annual, ACT/ACT (incl. 137 days accrued), full first
• Reoffer: 99.999 / 4.244% Ann
• Benchmark: UKT 4 3/8 03-Jul-30 (100.61) +0.6bps / HR 99%
• Denominations: £1k + £1k
• Documentation: Issued off KfW's EMTN Programme
• Leads: Santander / UBS
• Listing: Luxembourg
• ISIN: XS3006160033 (immediately fungible on Settlement)
• Target Market: Manufacturer target markets (MIFID II product governance) as assessed by the lead managers are eligible counterparties and professional and retail (all distribution channels)
• Use of Proceeds: KfW will use an amount equal to the bond proceeds to finance new eligible green projects according to the "Green Bonds, Made by KfW" framework, which has received a Second Opinion by Morningstar Sustainalytics.
• Additional Info: Framework, Second Party Opinion and Investor presentation available on https://www.kfw.de/green-bonds
• Timing: PRICED - TOE 12.26 UKT / 13.26 CET - FTT Immediately

PRICED: Province of Quebec £1bn 5yr Sr Unsec; SONIA MS+45bp

IGC European Market: Deal Flow - SSA

Reoffer: 5yr: SONIA MS+45bp / 99.578 / 4.471%
Benchmark: UKT 0.25% 02-Jul-31 @ 82.158 / G+25bp / HR 110%

Final Books: In excess of £2.5bn (excl. JLM interest)

Spread set at: 5yr: SONIA MS+45bp - Books in excess of £1.8bn (excl. JLM interest)
Guidance: 5yr: SONIA MS+47a

• Issuer: Province of Quebec (Ticker: "Q")
• Issuer Ratings: Aa2/A+/AA- (Moody's/S&P/Fitch)
• Distribution: Regulation S
• Format of Notes: Bearer Notes Tefra D. NGN
• Size: £1bn
• Settlement: 02-Jul-26 (T+5)
• Maturity: 02-Jul-31
• Coupon: 4.375%, Annual, ACT/ACT
• Spread: SONIA MS+45bp
• Price / Yield: 99.578 / 4.471%
• Denoms: £100k + £1k
• Docs: Under the Issuer’s EMTN Programme
• Leads: HSBC, NatWest, RBC (DM/B&D), TD
• Listing: Luxembourg Euro MTF Market
• Law: Province of Quebec/Canada
• ISIN: XS3429232674
• Timing: Priced. TOE: 13:42 UKT. FTT: Immediately.

PRICED: Air France-KLM €500m 5yr Sr Unsec; MS+158bp

IGC European Market: Deal Flow - General

Reoffer: 5yr: MS+158bp / 99.7 / 4.318%
Benchmark: 5yr: OBL 2.5 Apr-31 #193 @ 99.54 / B+171.9bp / HR 99%

Final Books >€1.75bn. Peak book above €2.1bn (pre-rec).

Launched: 5yr: €500m @ MS+158bp - Book above €1.75bn (pre rec)
Guidance: 5yr: MS+160a - Books above €2.1bn (pre-rec)
IPTs: 5yr: MS+190a

• Issuer: Air France-KLM SA (Ticker: AFFP; Country: FR)
• LEI: 969500AQW31GYO8JZD66
• Issuer Rating: BB+ (stable) by S&P / BBB- (stable) by Fitch
• Expected Issue Ratings: BB+ by S&P / BBB- by Fitch
• Format: Senior, unsecured, Reg S (Cat2) Bearer Dematerialised Form
• Settlement Date: 01-Jul-26 (T+4)
• Maturity Date: 01-Jul-31 (5-year)
• Size: €500m
• Coupon: 4.25% (Annual, Act/Act, ICMA)
• Reoffer Price / Yield: 99.7% / 4.318%
• Reoffer Spread: MS+158bps / B+171.9bps
• Reference Security: OBL 2.5 Apr-31 #193 @ 99.54%(2.599%) HR 99%
• Docs: EMTN / French Law / MWC B+30 bps / Change of Control / Clean-Up Call 75% / 3m Par Call / €100k+100k
• Listing: Euronext Paris
• Global Coordinators: BNP Paribas (B&D), Citi, Crédit Agricole CIB
• Active Bookrunners: BNP Paribas (B&D), Citi, Crédit Agricole CIB, Deutsche Bank, Goldman Sachs Bank Europe SE, ICBC, Santander, SMBC
• Use of Proceeds: General Corporate Purposes
• Timing: TOE 15.11 UKT FTT 15.30 UKT / 16.30 CET
• ISIN: FR0014019F53
• Target Market: MiFID II and UK MiFIR professionals & ECPs-only. Manufacturer target market (MiFID II product governance and UK MiFIR product governance rules) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs or UK PRIIPs key information document (“KID”) has been prepared as the Notes are not available to retail in EEA or the United Kingdom.
• Advertisement: The Base Prospectus, its supplements and Final Terms, when published, will be available on the website of the Issuer: www.airfranceklm.com and on the website of the Autorité des marchés financiers (www.amf-france.org)

5yr (Jul 2031) @ MS+190 area

Implied Spread for fresh 5yr @ MS+159

Priced at MS+158
NIC of -1

PRICED: Schneider Electric €1.5bn 2yr FRN & L7yr Sr Unsec; 3mE+30bp & MS+58bp

IGC European Market: Deal Flow - General

Reoffer: 2yr: 3mE+30bp / 100 L7yr: MS+58bp / 99.942 / 3.386%
Benchmark: L7yr: DBR 2.6% 15-Aug-33 @ 99.245 / B+66.9bp / HR: 101%

2yr FRN: Final Books >€1.55bn. Peak book >€2.3bn
L7yr FXD: Final Books >€2.0bn. Peak book >€2.9bn

Launched:
2yr: €800m @ 3mE+30bp - Books > €1.75bn
L7yr: €700m @ MS+58bp - Books > €2.1bn
Guidance: 2yr: 3mE+30bp - Books > €2.3bn L7yr: MS+60+/-2bp - Books > €2.9bn
IPTs: 2yr: 3mE+55/60bp L7yr: MS+90/95bp

• Issuer: Schneider Electric SE
• Ticker: SUFP
• Country: FR
• Issuer Ratings: A2/A (Moody's/S&P)
• Expected Issue Ratings: A (S&P)
• Rating Split: Issuer: A2/A (Moody's/S&P), Issue: A (S&P)
• Format: Senior, Unsecured, Reg S Bearer Dematerialised Notes, Category 2
• Settlement: 01-Jul-26 (T+4)
• Issue Type:
• • 2yr FRN
  • Long 7yr FXD
• Maturity Date:
• • 2yr FRN: 01-Jul-28
  • L7yr FXD: 01-Dec-33
• Size:
• • 2yr FRN: €800m
  • L7yr FXD: €700m
• Reoffer:
• • 2yr FRN: 100 / 3mE+30bp
  • L7yr FXD: 99.942 / MS+58bp / 3.386%
• Coupon:
• • 2yr FRN: 3mE+30bp, Quarterly, ACT/360
  • L7yr FXD: 3.375%, Annual, ACT/ACT Short first coupon
• Benchmark:
• • L7yr FXD: DBR 2.6% 15-Aug-33 @ 99.245 / 2.717% (DBR+66.9bp / HR: 101%)
• Make-Whole Call:
• • L7yr FXD: B+10bp
• Par Call:
• • 2yr FRN: Yes, 1 month
  • L7yr FXD: Yes, 3 months
• ISIN Code:
• • 2yr FRN: FR0014019M54
  • L7yr FXD: FR0014019MF8
• Documentation: EMTN Programme
• Listing: Euronext Paris
• Governing Law: French Law
• Denominations: €100,000 + €100,000
• Other Calls: Clean-up call (75%), Change of Control Put
• Use of Proceeds: General corporate purposes
• Active Bookrunners: Credit Agricole CIB, Deutsche Bank, J.P. Morgan (B&D), HSBC, MUFG, Natixis
• Target Market: Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only. No EU PRIIPs or UK PRIIPs key information document (KID) has been prepared as not being made available to retail in the EEA or the UK
• Issuer LEI: 969500A1YF1XUYYXS284
• Advertisement: The Base Prospectus dated 5 May 2026 and the Final Terms, when published, will be available on the website of the AMF (www.amf-france.org) and/or on the Issuer’s website
• Selling Restrictions: As per the Base Prospectus
• TOE / FTT: 15.35 UKT / 16.00 UKT
  

2yr FRN (Jul 2028) @ 3mth € +55 to +60

Implied Spread for fresh 2yr FRN @ 3mth € +29

Priced at 3mth € +30
NIC of +1

Long 7yr (Dec 2033) @ MS+90 to +95

Implied Spread for fresh Long 7yr @ MS+57

Priced at MS+58
NIC of +1

Details correct at time of posting