Commentary & Deal Flow

• European € IG primary markets were effectively closed today with zero issuance. There was, however, some activity in the Swiss Franc IG market from 1 issuer (Severn Trent) pricing a single tranche, sustainable 8 year offering for Chf180m at SARON MS +95. This was the only action in the IG markets today with the US markets closed for the 250 year independence celebrations.
• Zero IG issuance today in Sterling & Reg S $’s.
• 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: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing NA (unsecured)
    • Avg. cover NA
  • SSA
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA
    • Avg. cover NA
• Pipeline: Two mandates were announced today. One a potential Sterling tap from the UK’s DMO for next week & the other a European corporate announcing investor calls for Monday, with a potential 5 year green issue to follow.
• • 1 x € Corp
  • 1 x £ SSA

Euro IG (today)

• No Supply

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)

Corp

Severn Trent Utilities Finance Plc (exp. Issue ratings of Baa1 / A- by Moody’s & Fitch) - guaranteed by Severn Trent Water Limited, announced an 8 year senior unsecured, sustainable issue. The initial size of the bookbuilding process was for a minimum of Chf100m, with terms at a yield of SARON MS+95 to +105. The deal minimum was raised to Chf150m when the spread set at SARON MS+95.

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates

Euro (€)

• Friday 3rd July: European Outlet Mall Venture S.a.r.l. (exp. Issue rating of BBB+ by Fitch), a leading European fashion designer retail outlets owner, mandated BNP Paribas as Joint Global Coordinator, ING as Joint Global Coordinator & ESG Structurer & together with Crédit Agricole CIB as Joint Bookrunners to arrange a series of fixed income investor calls commencing Monday, 6th July 2026. BNP Paribas is coordinating logistics. A € benchmark, 5-year, RegS, bearer, Senior Unsecured, green bond offering will follow, subject to market conditions. An amount equal to the net proceeds of the issue of the Notes will be used to finance &/or refinance, in whole or in part, new or existing Eligible Green projects as further described in the Issuer’s Green Finance Framework.

Sterling (£)

• Friday 3rd Jul: The United Kingdom Debt Management Office (DMO) announces the appointment of a syndicate to sell by subscription a re-opening of 1 3/4% Index-linked Treasury Gilt 2038 in the week commencing 13th July 2026, subject to demand & market conditions. Joint Bookrunners: Barclays, BNP Paribas, NatWest & Nomura. Co-Lead Managers: All other wholesale Gilt-edged Market Makers (GEMMs) are being invited to be Co-Lead Managers.

Transaction Details

PRICED: Severn Trent Utilities Finance Plc CHF180m 8yr Sust Sr Unsec; SARON MS+95

IGC European Market: Deal Flow - General

Reoffer: 8yr: SARON MS+95 / 100 / 1.415%

Spread set at: 8yr: SARON MS+95bp
IPTs: 8yr: SARON MS+95/105bp // Ind. YTM 1.4075%/1.5075%

• Issuer: Severn Trent Utilities Finance Plc (Ticker: SVTLN)
• Guarantor: Severn Trent Water Limited
• Guarantee: The Notes will be unconditionally and irrevocably guaranteed by the Guarantor
• Domestic / Foreign: Foreign
• Guarantor Domicile: United Kingdom
• Format: Public Fixed-Rate Sustainable Notes
• Ranking: Senior Unsecured
• Rating Split: Guarantor: Baa1/BBB+ (Moody's/Fitch), Issue: Baa1/A- (Moody's/Fitch)
• Life: 8yr
• Settlement Date: 07-Aug-26
• Maturity Date: 07-Aug-34
• Size: CHF 180m
• Coupon: 1.415% p.a.
• Reoffer Price: 100
• Reoffer Yield: 1.415%
• Reoffer Spread: SARON MS+95
• ISIN: CH1564881964
• Lead Managers: BNP Paribas, UBS, Mizuho (JLNB)
• Listing: SIX Swiss Exchange as of 05-Aug-26
• SNB Repo eligibility: At the discretion of the SNB, expected no
• Documentation: Base Prospectus dated 16-Jul-25, as supplemented, amended and/or updated from time to time. Prospective investors are informed that the Issuer is expected to publish an update of the Base Prospectus on or around 16-Jul-26
• Governing Law: English law
• FINSA Prospectus: Yes, delayed in accordance with art. 51 para. 2 Finsa
• Covenants: PP, NP, XD
• Use of Proceeds: The Notes are intended to be issued as Sustainable Notes. Accordingly, an amount equal to the net proceeds from the issue will be allocated by the Issuer to Eligible Sustainable Investments as set out in the Group’s Sustainable Finance Framework, which for this issuance will fall within Green Eligible Categories. A Second Party Opinion has been obtained from DNV Business Assurance Services Limited
• Min. Denomination: CHF 5,000 and integral multiples thereof
• Sales Restrictions: In particular, European Economic Area, United States of America, Belgium, Japan, Singapore and United Kingdom in accordance with the Selling Restrictions set out the Base Prospectus
• Target Market: The manufacturer target market (MiFID II / MIFIR Product Governance) is eligible counterparties, professional clients and retail clients in Switzerland only (all channels for distribution), subject to applicable selling restrictions

Details correct at time of posting