• European € IG primary supply today was quiet as expected, with a ‘no-deal-day’. While escalating military activity in the Middle East was a contributing factor, the primary reason was the Bastille Day holiday in France.
• All activity was limited to the Sterling IG market with 3 issuers (2 x FIG & 1 x SSA), pricing a total of £5.3bn, via 3 tranches; clearing the existing pipeline. The long awaited, but scheduled, DMO tap produced an impressive final book of over £60bn, over 12.6 times over subscribed.
• The Swiss Franc & US$ Reg S market produced zero new issues.
• The month of December aside, zero issuance on both a Monday & Tuesday in the € IG primary markets are rare, with the last relevant example as far back as the 5th & 6th of August 2024. On this occasion the financial markets experienced a ‘flash crash’ sparked by fears of a US recession, tech sector sell-off & the unwinding of the Yen carry trade, - which sparked rapid liquidations following the BoJ unexpectedly hiking rates by 25bps. Equity markets nose-dived & primary markets effectively shut down. Interestingly, the Wednesday that followed this ‘flash crash’ was also a no-print day in € IG.
• 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: Currently there are no €, £, Chf or Reg S $ transactions in the IG pipeline.

Euro IG (today)

• No Supply

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• Standard Life plc (exp. Issue rating of BBB+ by Fitch; senior rating of A+ by Fitch). Having mandated & conducted investor calls yesterday, the borrower brought its £350m (wng), perpetual NC8 year, Restricted Tier 1 Contingent Convertible Notes (the “Notes”) in RegS registered format. IPTs on the offering were in the area of 7.875%. Books were first called at over £1bn, rising to over £2.35bn (pre-rec), when the coupon set 50bps tighter than IPTs at 7.375%. The trade priced £350m at that 7.375% level, offering investors a NIC of +12.5bps. Final books were over £1.7bn.
• • 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. For additional context, the last Restricted Tier 1 € trade to come to market was BNP Paribas Cardif’s €700m, PerpNC7 on the 10th of June, which priced at 6.125% (from IPTs of 6.5%) - the issue was rated BBB- by S&P.

• Paragon Banking Group plc (exp. Issue ratings of Baa3 / BBB- by Moody’s & Fitch) mandated & conducted investor calls yesterday, ahead of today’s £175m (exp) long 10NC5 Green Tier 2 offering in RegS registered form. IPTs on the issue were in the area of UKT+230. Books were called at over £600m, rising to over £800m. The deal sized at £200m & priced at UKT+205; 25bps tighter than IPTs, with a NIC of 5bps. Final books were >£560m.
• • 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.

• Having first announced the trade on the 3rd of July, The United Kingdom Debt Management Office (DMO) (rated Aa3 / AA / AA- by Moody’s, S&P & Fitch) brought their anticipated re-opening of 1.75% Index-linked Treasury Gilt 2038. Books were opened with guidance of the UKTi 1.125% 22nd Nov 2037 +9.25 to +9.5 & rapidly hit £45bn (inc. £4bn JLMs). Guidance remained unchanged as first books were announced, with the spread setting shortly thereafter at UKTi+9.25. The orderbook rose to £51bn (same JLM interest). Final order books closed at £60bn (inc. JLMs of £4.75bn), when the deal sized & launched at £4.75bn - the same as JLM interest! The trade priced on those terms.
• • Going into the trade the outstanding amount of the 22nd September 2038’s was £9.75bn. The new outstanding amount is £14.5bn.

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)   

• No Supply

US$ Reg S (today)

• No Supply

Pending Deals & Mandates

• None

Transaction Details

PRICED: United Kingdom £4.75bn 12yr Sr Unsec; UKTi'37+9.25bp

IGC European Market: Deal Flow - SSA

Reoffer: 12yr: UKTi'37+9.25bp / 96.471 / 2.0792%
Benchmark: 12yr: UKTi 1.125% 22-Nov-37 @ 91.28 / 1.9867% (HR 55%)

Final Books: In excess of £60bn (including JLM interest of £4.75bn). Peak Book: In excess of £60bn.

Launched: 12yr: £4.75bn @ UKTi'37+9.25bp - Order book closed in excess of £60bn (including JLM interest of £4.75bn)
Spread set at: 12yr: UKTi'37+9.25bp - Orderbook in excess of £51bn (including JLM interest of £4.0bn)
Book Update: Orderbook in excess of £45bn (including JLM interest of £4.0bn)
IPTs: 12yr: UKTi'37+9.25/9.50bp

• Issuer: United Kingdom
• LEI: ECTRvyycef89vwys6k36
• Rating: Aa3/AA/AA- (Moody's/S&P/Fitch)
• Format: Reg S, Registered Form, Fixed Rate Notes
• Size: £4.75bn
• New Outstanding: £14.5bn
• Settlement Date: 15-Jul-26 (T+1)
• Maturity: 22-Sep-38
• Coupon: 1.75% Semi Annual, ACT/ACT
• Reoffer: 96.471 / 2.0792%
• Benchmark: UKTi 1.125% 22-Nov-37 (GB00B1L6W962) (91.28 / 1.9867%)
• Spread: UKTi 1.125% 22-Nov-37 +9.25bps (HR 55%)
• Denominations: £0.01
• Listing: FCA Official List / London Stock Exchange (Main Market)
• Governing Law: English Law
• Documentation: Issuer’s Stand-Alone Documentation
• Target Market: UK MiFIR Eligible counterparties, Professional clients, and retail clients only (all distribution channels) MIFID II Eligible counterparties and professional clients (all distribution channels)
• ISIN: GB00BMY62Z61
• Joint Leads: Barc (B&D/DM), BNPP, NatWest, Nomura
• Timing: Priced TOE 11.28 UKT / FTT Immediately

PRICED: Paragon Banking Group £200m 10NC5 T2 Green; UKT+205bp

IGC European Market: Deal Flow - General

Reoffer: 10NC5: UKT+205bp / 99.895 / 6.518%
Benchmark: Mid UKT 0.25% 31-Jul-31 @ 81.138 / HR 109%

Final Books >£560m. Peak book >£800m.

Launched: 10NC5: £200m @ UKT+205bp - Books >£800m
Book Update: Books in excess of £600m
IPTs: UKT+230a

• Issuer: Paragon Banking Group plc (PAGLN)
• LEI: 213800S1TDKIB1IUTS72
• Instrument: Fixed Rate Reset Callable Subordinated Tier 2 Green Notes
• Issuer Ratings: Baa2 (stable) by Moody’s / BBB+ (stable) by Fitch
• Expected Ratings of Issue: Baa3 (Moody’s) / BBB- (Fitch)
• Status and Subordination: The Notes constitute direct, unsecured, unguaranteed and subordinated obligations of the Issuer and rank pari passu and without any preference among themselves. Upon a winding up or administration of the Issuer, the claims of Noteholders (a) are subordinated to the claims of Senior Creditors (being (i) unsubordinated creditors of the Issuer, (ii)subordinated creditors of the Issuer (other than those whose claims rank pari passu or junior, to claim of the Noteholders or are in respect of Tier 1 Capital and all classes of share capital of the Issuer or Tier 2 Capital) or (iii) creditors of secondary non-preferential debts, and (b) rank (i) at least pari passu with all other subordinated obligations which constitute Tier 2 Capital; and (ii) in priority to the claims of holders of Tier 1 Capital and all classes of share capital of the Issuer
• Format: Standalone, Reg S, Registered
• Size: £200m
• Reoffer: UKT+205bps | 99.895 | 6.518% (S/A)
• Benchmark Security: Mid UKT 0.25% 31-Jul-31 @ 81.138 MID | 81.118 BID | HR 109%
• Issue / Settlement Date: 21-Jul-26 (T+5)
• Maturity: 30-Sep-36
• First Call Date: 01-Aug-31
• Reset Date: 30-Sep-31
• Benchmark Reference Bond: UKT 0.250% Jul-31
• Interest: The Notes will bear interest on their outstanding principal amount from (and including) the Issue Date to (but excluding) the Reset Date at a rate of 6.5 per cent. per annum. From (and including) the Reset Date to (but excluding) the Maturity Date (the Reset Period), the Notes will bear interest at a rate which is the aggregate of the margin of 2.05 per cent. and the relevant Reset Reference Rate
• Interest Payment Dates: 30 March and 30 September in each year, commencing on 30 March 2027 (long first interest period)
• Optional Redemption: Subject to PRA Permission and compliance with the Regulatory Preconditions, the Issuer may redeem the Notes, in whole but not in part, at par, plus accrued and unpaid interest, on any day (from and including) 1st August 2031 to (and including) the Reset Date
• Redemption following a Tax Event or Regulatory Event: Subject to PRA Permission and compliance with the Regulatory Preconditions, the Issuer may redeem the Notes, in whole but not in part, at par, plus accrued and unpaid interest, at any time upon a Regulatory Event or a Tax Event
• Issuer's Clean-up Call Option: Subject to PRA Permission and compliance with the Regulatory Preconditions, if, at any time, the outstanding aggregate principal amount of the Notes is 25 per cent. or less of the aggregate principal amount of the Notes, the Issuer may redeem all (but not some only) of the remaining outstanding Notes on any date at par plus accrued and unpaid interest
• No set-off: Subject to applicable law, no Noteholder may exercise or claim or plead any right of set-off, compensation, counterclaim, retention or netting in respect of any amount owed to it by the Issuer in respect of, or arising under or in connection with, the Notes or the Trust Deed and each Noteholder will, by virtue of their holding of any Note (or any beneficial interest therein), be deemed, to the fullest extent permitted by applicable law, to have waived all such rights of set-off, compensation, counterclaim, retention and netting.
• Bail-in: Agreement and Acknowledgement with Respect to the Exercise of Bail-in Power by the relevant UK Resolution Authority
• Regulatory Event: Whole or partial de-recognition from Tier 2 Capital of the Group due to a change in regulatory classification
• Tax Event: A change in the relevant tax laws or regulations resulting in, amongst other things, (i) loss of tax deductibility or (ii) requirement to pay additional amounts in respect of the Notes
• Substitution / Variation: Subject to PRA Permission and compliance with the Regulatory Preconditions, where required, upon the occurrence of a Tax Event, Regulatory Event, the Issuer may at any time, in its sole discretion and without the consent of Holders, substitute all (but not some only) of the Notes for, or vary the terms of the Notes or the Trust Deed so that the Notes remain or become, Compliant Notes
• Events of Default: In the event of non-payment of principal or interest on the Notes when due, the Trustee may (if so directed by Noteholders) institute proceedings for the winding up of the Issuer. The Notes may only be accelerated in the event of a Winding-Up Event
• Documentation: Standalone, Preliminary Offering Circular dated 13-Jul-26
• Selling Restrictions: Regulation S, not 144A eligible, as described in the Preliminary Offering Circular. Customary selling restrictions in the UK, EEA, Canada, Italy, Japan, Singapore and as more fully set out in the Preliminary Offering Circular
• Clearing Systems: Euroclear and Clearstream, Luxembourg
• Denominations: £100,000 and integral multiples of £1,000 in excess thereof
• Expected Listing: Admission to trading on the International Securities Market (ISM) of the London Stock Exchange and the Sustainable Bond Market of the London Stock Exchange
• Governing Law: English law
• Use of Proceeds: Proceeds of the Notes will be on-lent to Paragon Bank plc by way of the Issuer purchasing an equivalent principal amount of tier 2 securities to be issued by Paragon Bank plc. Paragon Bank plc will use such proceeds for the general corporate purposes of the Group, which may include the refinancing of the Issuer's £150,000,000 4.375 per cent. Fixed Rate Reset Callable Subordinated Tier 2 Notes due 2031. An amount equal to the gross proceeds of the Notes will be down streamed to Paragon Bank. The Issuer also intends that an amount equal to the proceeds will be allocated in accordance with its Green Bond Framework for the financing and/or re-financing of Eligible Loans (as described more fully in the Preliminary Offering Circular)
• Target Market: UK MiFIR product governance is eligible counterparties and professional clients only (all distribution channels). No EEA PRIIPs key information document (KID) or UK CCI product summary has been prepared as the Notes will not be made available to retail investors in the EEA or the UK. No sales to retail clients (as defined in the FCA COBS 3.4) in the UK
• Advertisement: The final Offering Circular, when published, will be available on the website of the Issuer (https://www.paragonbankinggroup.co.uk/investors)
• Day Count Fraction: Act/Act (ICMA)
• Business Day Convention: Following, unadjusted
• Business Days: London
• ISIN / Common Code: XS3392880038 / 339288003
• Joint Lead Managers: Barclays, BofA Securities (DM), Jefferies (B&D), UBS Investment Bank
• Timing: ToE 14.23 UKT | FTT 14.40 UKT

Tier 2 Green
Long 10NC5 (Sept 2036) @ UKT+230a

Implied Spread for fresh L 10NC5 @ UKT+200

Priced at UKT+205
NIC of +5

PRICED: Standard Life £350m PerpNC8 RT1; 7.375%

IGC European Market: Deal Flow - General

Reoffer: PerpNC8: 7.375% / 100
Benchmark: PerpNC8: UKT 4.25% 07-Jul-34 @ 96.070 / G+253bp

PerpNC8: Final Books over £1.7bn. Peak book over £2.35bn (pre-rec)

Launched: PerpNC8: £350m @ 7.375% - Books over £2.35bn (pre-rec)
Book Update: Books over £1bn
IPTs: PerpNC8: 7.875%a

• Issuer: Standard Life plc (Ticker: SDLF)
• Instrument: £ Fixed Rate Reset Perpetual Restricted Tier 1 Contingent Convertible Notes (the “Notes”)
• Long Term Issuer Default Rating: A+ (Fitch)
• Expected Issue Rating: BBB+ (Fitch)
• Status and Subordination: Direct, unsecured and subordinated obligations of the Issuer, ranking pari passu and without any preference among themselves. Subordinated to Tier 2 and Tier 3 obligations, policyholders and other unsubordinated obligations of the Issuer as further described in the Preliminary Offering Circular and the Final Offering Circular.
• Currency: £
• Issue Amount: £350,000,000
• Pricing Date: 14-Jul-26
• Settlement Date: 21-Jul-26 (T+5)
• Maturity: Perpetual
• Redemption at Option of Issuer: At any time from (and including) 21-Jan-34 (6m par call) to (and including) the First Reset Date, or on any Interest Payment Date thereafter, subject to Redemption and Purchase Conditions
• Reset Dates: 21-Jul-34 (“First Reset Date”) and on each fifth anniversary of the First Reset Date thereafter
• Reoffer Price: 100% 7.375% s/a. UKT 4.25 7/34 + 253bp (mid spot: 96.070 )
• Interest: Fixed rate of 7.375% per annum until the First Reset Date, payable semi-annually in arrear on 21 January and 21 July, commencing 21-Jan-27. Resets on the First Reset Date and each Reset Date thereafter to the relevant 5-year Gilt Rate plus the Margin (no-step up)
• Margin: 253bp
• Interest Cancellation: Optional at the discretion of the Issuer and mandatory upon (i) the Solvency Condition not being met; (ii) non-compliance with any applicable Solvency Capital Requirement (SCR); (iii) non-compliance with any applicable Minimum Capital Requirement (MCR); (iv) insufficient Distributable Items; (v) as otherwise required by the PRA or under the Relevant Rules; or (vi) upon an Automatic Conversion (subject as described in the Preliminary Offering Circular and the Final Offering Circular)
• Special Event Redemption: Optional, upon the occurrence of a Tax Event, a Capital Disqualification Event or a Ratings Methodology Event, subject to Redemption & Purchase Conditions. Clean-up call option at par applies if 75 per cent. or more of the aggregate principal amount of the Notes originally issued have been purchased by the Issuer or any of its Subsidiaries and cancelled, subject to Redemption & Purchase Conditions
• Redemption & Purchase Conditions: To the extent required under the Relevant Rules, any redemption or purchase of the Notes is subject to: (i) if within the first 5 years from issuance, replacement with capital of the same or higher quality (or in the case of a Tax Event or a Capital Disqualification Event, the PRA being satisfied that the SCR will be exceeded by an appropriate margin and other conditions); (ii) if between 5 and 10 years from issuance, the PRA having confirmed to the Issuer that it is satisfied that the SCR is exceeded by an appropriate margin or replacement with capital of the same or higher quality; (iii) the Solvency Condition being met; (iv) each applicable SCR being met; (v) each applicable MCR being met; (vi) no Trigger Event has occurred; (vii) no Insolvent Insurer Winding-up has occurred and is continuing; (viii) the Regulatory Clearance Condition being satisfied; and/or (ix) compliance with any further or alternative requirements as imposed by the PRA or the Relevant Rules at the relevant time (subject as described in the Preliminary Offering Circular and the Final Offering Circular)
• Substitution / Variation: Subject to certain conditions upon a Tax Event, a Capital Disqualification Event, or a Ratings Methodology Event. Substitution of the Issuer is permitted in the event of a Newco Scheme and if there is an Insurance Group Parent Entity Automatic Substitution
• Trigger Event: If at any time: (i) Own Fund Items ≤ 75% of each applicable SCR; (ii) Own Fund Items ≤ the applicable MCR; or (iii) breach of any applicable SCR has occurred and has not been remedied within 3 months
• Automatic Conversion: Upon the occurrence of a Trigger Event, the Notes will convert into ordinary shares of the Issuer (in whole, not in part) at the Conversion Price on a permanent and irrevocable basis, with the Issuer's obligations under the Notes being released, unless waived by the PRA
• Conversion Price: £1,000 per Conversion Share, subject to adjustment in accordance with the Conditions
• Conversion Shares Offer: Unless the Issuer elects that such an offer should not take place, the Eligible Conversion Shares will be offered by or on behalf of the Conversion Shares Depositary to, in the absolute discretion of the Issuer, some or all of the existing shareholders of the Issuer for purchase at the then-prevailing Current Market Price and the Conversion Shares Offer Consideration will be delivered to Noteholders who do not elect to receive Conversion Shares
• Redemption Price: 100%
• Denominations: £200k + £1k
• Use of Proceeds: The net proceeds of the issue of the Notes are expected to be used in full to fund a portion of the consideration for the Aegon UK Acquisition (as defined in the Preliminary Offering Circular and the Final Offering Circular) but may also be used to fund general commercial activities of the Group
• Target Market: Manufacturer target market (MIFID II / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) or UK DISC disclosure document has been prepared as not available to retail in EEA or the UK
• Selling Restrictions: Reg S, Category 2, US, UK, EEA, Switzerland, Canada, Singapore, Hong Kong as more fully set out in the Preliminary Offering Circular and Final Offering Circular. No sales to retail investors. FCA/ICMA stabilisation applies. FCA CoCo restriction. Hong Kong sales to Professional Investors only.
• Governing Law: English law
• Listing: International Securities Market (exchange regulated market of the London Stock Exchange)
• Day Count / Business Days: Act/Act (ICMA), Following, Unadjusted
• ISIN / Common Code: XS3435285070 / 343528507
• LEI: 2138001P49OLAEU33T68
• Form of Securities: Registered
• Documentation: Standalone Preliminary Offering Circular dated 13-Jul-26 (the “Preliminary Offering Circular”) and the final Standalone Offering Circular (the “Final Offering Circular”) once published
• Joint Lead Managers: BNP Paribas, BofA Securities, Citigroup, and Santander
• Timing: TOE: 15:22 UKT. FTT 15:45 UKT
• Fees: The Joint Lead Managers will be paid a fee in connection with this transaction. Details of the fee may be available to investors upon request
• Advertisement: The Final Offering Circular will be available on the website of the Issuer at https://www.standardlifeplc.com/investors/debt-holdings-credit-ratings

RT1
PNC8 (July 2034) @ 7.875%a

Implied Spread for fresh PNC8 @ 7.25%

Priced at 7.375%
NIC of +12.5

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