• European € IG primary supply today was quiet with zero supply ahead of the French holiday tomorrow & renewed geo-political instability.
• The Swiss Franc market was the sole source of activity with 1 issuer (1 x SSA) pricing a total of Chf150m via 1 tranche.
• Sterling IG saw 2 new mandates announced, yet no deals priced.
• France will celebrate Bastille Day tomorrow, marking the beginning of the revolution in 1789. French financial exchanges technically remain open, despite it formally being a ‘public holiday’. They do so to prevent unnecessary market fragmentation & to maintain liquidity across Europe. Euronext operates on a standardised exchange calendar & only shuts down for major pan-European holidays. That said, French investors make up a major part of the European buyer base so ‘pan-European’ primary market offerings are likely to wait. Sterling & Swiss Franc markets will, however, be unaffected & will remain open.
• 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: Both Standard Life & Paragon Banking Group announced investor calls on  Monday for potential trades - both subordinated. Additionally, the DMO £ trade remains in play & stays scheduled for this week's business.
• • 2x £ FIG
  • 1 x £ SSA

Euro IG (today)

• No Supply

Sterling IG (today)

• No Supply

Swiss Franc IG (today) 

• As the market deliberated on the week ahead, the only trade to hit the screens this morning was from European Company for the Financing of Railroad Rolling Stock (aka Eurofima) (exp. Issue ratings of Aa2 / AA / AA by Moody’s, S&P & Fitch), with a Chf150 (wng) 9 year offering. Initial spread talk on the trade was SARON MS +27 to +30 & the spread set at SARON MS+27. With the size already set the trade launched & priced early at that +27 level.
• • Eurofima has tapped the € market twice this year, for a total of €1.1bn, with a 4yr & 20yr. A popular credit story, the borrower last placed an offering into Switzerland in early 2022, with a Chf200m, 10yr. 

US$ Reg S (today)

• No Supply

Pending Deals & Mandates 

Sterling (£)

• Monday 13th July: Standard Life plc (exp. Issue rating of BBB+ by Fitch; senior rating of A+ by Fitch) mandated BNP Paribas, BofA Securities, Citigroup, & Santander as Joint Lead Managers to arrange a series of investor calls commencing on the 13th of July. A £350m (wng) issue of perpetual Restricted Tier 1 Contingent Convertible Notes (the “Notes”) in RegS registered format resettable after 8 years will follow, subject to market conditions. The Notes will feature principal loss absorption in the form of contingent equity conversion, linked to non-compliance with the Issuer’s regulatory capital requirements.
• • The borrowers’ most recent issue was 2 yrs ago, when it issued a $500m PNC5 on the 6th of June, 2024. Its last £ primary sale was in November of 2023, with a 30NC10 Tier 2, which had a book 5 x covered.
• Monday 13th July: Paragon Banking Group plc (exp. Issue ratings of Baa3 / BBB- by Moody’s & Fitch) mandated Barclays, BofA, Jefferies & UBS as Joint Lead Managers to arrange a series of investor calls commencing Monday 13th of July. A £175m (exp.) long 10NC5 Green Tier 2 in RegS registered form.
• • Paragon Group priced a £500m 3.25yr FRN covered bond as recently as last week. That said, the specialist mortgage provider is an infrequent visitor to the primary bond markets, with as little as £2.1bn of debt currently outstanding.

• Friday 3rd July: 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: EUROFIMA CHF 150m 9yr Sr Unsec; SARON MS+27bp

IGC European Market: Deal Flow - SSA

Reoffer: 9yr: SARON MS+27bp / 100 / 0.875%
Benchmark: 9yr: Govt.+49bp

Launched: 9yr: CHF 150m @ SARON MS+27bp
Spread set at: 9yr: SARON MS+27bp - Books to close at 10.55am CEST
IPTs: 9yr: SARON MS+27/30bp

• Issuer: EUROFIMA European Company for the Financing of Railroad Rolling Stock (Ticker: EUROF)
• Issuer Domicile: Switzerland
• Format: Public Fixed-Rate Bonds
• Status: Senior unsecured debt
• Issuer Rating: Aa2 st. (Moody’s) / AA st. (S&P) / AA st. (Fitch)
• Instrument Rating (exp): Aa2 (Moody's) / AA (S&P) / AA (Fitch)
• Sustainability Rating: MSCI ESG AAA / ISS ESG B- Prime / Sustainalytics 4.6 negligible risk / Inrate B-
• Issue Size: CHF 150m
• Coupon: 0.875% p.a.
• Maturity: 9 years (20-Jul-26 until 20-Jul-35)
• Issue Price: 100.000%
• Spread/Yield: SARON MS +27.0 // YTM 0.875% // Govt.+49
• ISIN / Security Number: CH1580409162 / 158040916
• Lead Manager(s): ZKB, BKB, UBS
• SNB Repo-eligibility: At the discretion of the SNB, expected yes (HQLA Level 2)
• Documentation: Standalone
• FinSA Prospectus: No prospectus required in accordance with art. 37 FinSA
• Governing Law: Swiss law
• Covenants: PP, NP, XD
• SIX Listing: 17-Jul-26
• Denomination: CHF 5000
• Use of Proceeds: General funding purposes
• Sales Restrictions: USA, US persons, UK, EEA
• Settle: 17-Jul-26 (T+4)

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