Commentary & Deal Flow
CreditFlow: End of Day (Europe IG)
- Despite the geo-political noise heading into the session, the primary market was open for business with oil having found range, & risk indices lower than yesterday (Vix a point tighter), most borrowers elected to stay-away.
- On the back of strong Q2 numbers yesterday & a $10bn print in the US Goldman Sachs was the sole visitor to the € IG market today (see below for details), printing a collective €5bn, via 3 tranches.
- While the Swiss Franc & US$ Reg S markets were also quiet, we did have a late Sterling IG AAA print from 1 issuer (1 x SSA), pricing £250m, via 1 tranche.
- 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: €5bn
- Avg. tranche size €1.667bn
- Avg. IPT to Pricing NA (covered)
- Avg. IPT to Pricing -23.83 (unsecured)
- Avg. cover 2.53 X
- 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)
Type | Issuer | Size (m) | Structure | Initial Pricing | Final Spd / Yield | IPT to PX | NIC (bp) | Books (m) | Cover 'X' |
FIG | Goldman Sachs | €1,250 | 4NC3 FRN | 3mth €+100 to +105 | 3mth €+78 | -24.5 | - | €2,700 | 2.16 X |
FIG | Goldman Sachs | €2,000 | 4NC3 FTF | MS+90 to +95 | MS+68 | -24.5 | - | €4,700 | 2.35 X |
FIG | Goldman Sachs | €1,750 | 8NC7 FTF | MS+125 to +130 | MS+105 | -22.5 | - | €5,400 | 3.09 X |
- The Goldman Sachs Group Inc (rated A2 / BBB+ / A by Moody’s, S&P & Fitch) announced a multi-tranche, senior unsecured benchmark offering comprised of a 4NC3 FRN, a 4NC3 Fixed-to-Floating & an 8NC7 Fixed-to-Floating. IPTs on each tranche in turn were as follows; 3mth €+100 to +105, MS+90 to +95 & MS+125 to +130. Combined books were first telegraphed as over €8bn (split €2.2bn for the FRN & €2.7bn & €3.1bn in turn for the FTF’s). Spreads were set when combined books exceeded €11.25bn (4NC3 FRN >€2.6bn, 4NC3 Fxd >€4.4bn & 8NC7 Fxd >€4.2bn). The FRN set at 3mth €+78, with the shorter FTF at MS+68 - both 24.5bps tighter than IPTs. The 8NC7 tightened by 22.5bps from IPTs at MS+105. Collective books at launch were >€12.75bn. The deal launched & priced as follows. 4NC3 FRN, €1.25bn @ 3mth €+78; 4NC3 FTF, €2bn @ MS+68; & 8NC7 FTF, €1.75bn @ MS+105.
- GS last tapped the euro markets on the 15th of April with a dual-tranche / dual currency subordinated offering consisting of a €1.4bn, 10NC5 print & a £500m, 10.5NC5. This morning's print will be the 3rd time GS has come in €’s in 2026. Its last senior unsecured offering was on the 12th of February when it priced a €7bn, 4-tranche. Timing of today's trade is driven by strong results announced yesterday, which also led GS to raise a collective $10bn in the domestic US market with a triple-tranche 6NC5 FTF, 11NC10 FTF & a 31NC30 FTF.
Week-to-date volumes:
Year-to-date volumes:
Sterling IG (today)
Type | Issuer | Size (m) | Structure | Initial Pricing | Final Spd / Yield | IPT to PX | NIC (bp) | Books (m) | Cover 'X' |
SSA | BNG Bank N.V. | £250 | 5yr Social | SONIA MS+39 area | SONIA MS+39 | - | - | £250 | 1.00 X |
- Late morning European time BNG Bank N.V. (rated Aaa / AAA / AAA by Moody's, S&P & Fitch) announced a 5 year, senior unsecured benchmark Social offering. Guidance on the trade was in the area of SONIA MS+39. The trade sized at £250m when spread set in line with IPTs at SONIA MS+39. It priced on those terms with final books in excess of £250m (exc. JLMs).
- This is the 3rd visit to the € public markets in 2026 (all senior unsecured), having previously issued a €1.25bn, 10yr on the 1st of April at MS+31, & a €1.25bn 7yr on the 27th of May at MS+20. BNG tapped the € public markets 4 times in 2025 for a collective €4.5bn. Its last 5 yr was on the 14th of May 2025 - this is the shortest tenor that they issue.
Week-to-date volumes:
Year-to-date volumes:
Swiss Franc IG (today)
- No Supply
Week-to-date volumes:
US$ Reg S (today)
- No Supply
Pending Deals & Mandates
- None
Transaction Details
PRICED: BNG Bank N.V. £250m 5yr Social Sr Unsec; SONIA MS+39bp
IGC European Market: Deal Flow - SSA
Issuer | Term | Coupon | Maturity | Size | Ranking | Type | Price | Yield | Guidance | Spread | GDNC-PXD |
|---|---|---|---|---|---|---|---|---|---|---|---|
BNG Bank N.V. | 5yr | 4.625% | 31-Jul-31 | £250m | Sr Unsec | Fixed | 99.708 | 4.691% | SONIA MS+39a | SONIA MS+39 | 0 |
Reoffer: 5yr: SONIA MS+39bp / 99.708 / 4.691%
Benchmark: 5yr: UKT 0.25 31-Jul-31 @ 81.27 / B+20.0bp / HR 112%
Tranche 1 (5yr): Final Books £250m (excluding JLM interest). Peak book above £250m (excluding JLM interest)
Launched: 5yr: £250m @ SONIA MS+39bp - Books closed in excess of £250m (excluding JLM interest)
Guidance: 5yr: SONIA MS+39a
- Issuer: BNG Bank N.V.
- Issuer Ratings: Aaa/AAA/AAA (all stable) (Moody's/S&P/Fitch)
- Format: Senior, Unsecured, Reg S Bearer
- Size: £250m
- Maturity: 31-Jul-31
- Settlement: 22-Jul-26 (T+5)
- Coupon: 4.625% Fixed, Annual, Act/Act, long first
- Reoffer: 99.708 / 4.691% (Ann.) / 4.637% (S/A) / SONIA MS (A, A/365) + 39bps
- Gilt Ref: UKT 0.25 31-Jul-31 @81.270 (MID) / +20.0bps / 81.250 (BID) / HR 112%
- Denomination: £100k+£1k
- Listing: Luxembourg Stock Exchange’s Regulated Market
- Governing Law: Dutch Law
- Docs: Issuer’s Debt Issuance Programme
- Bookrunners: Deutsche Bank (B&D/DM), Santander, TD
- ISIN: XS3449045965
- LEI: 529900GGYMNGRQTDOO93
- Timing: PRICED. TOE 14:07 LDN. FTT Immediately
- Target Market: Professional & Eligible Counterparties (EU MIFID II/UK MIFIR)
- Use of Proceeds: The proceeds of the bond will be utilised for lending to Dutch Social Housing Associations to finance their social expenditures as defined in BNG Bank's ‘Sustainable Finance Framework’. The Framework and the second party opinion provided by ISS ESG are available on the Issuer's website, at https://www.bngbank.com/Funding/ESG-Bonds
- Bank of England Sterling Monetary Framework: Level B-eligible Collateral
- Advertisement: The prospectus relating to the securities is available at https://www.luxse.com/programme/Programme-BNGBank/2286
PRICED: The Goldman Sachs Group, Inc. €5bn 4nc3 FRN, 4nc3 FXD/FRN & 8nc7 FXD/FRN; 3m€+78bp, MS+68bp & MS+105bp
IGC European Market: Deal Flow - General
Issuer | Term | Call | Coupon | Maturity | Size | Ranking | Type | Price | Yield | Spread | IPT-PXD |
|---|---|---|---|---|---|---|---|---|---|---|---|
The Goldman Sachs Group, Inc. | 4nc3 | 3y | 3m€+78bp | 22-Jul-30 | €1.25bn | Sr Unsec | Floating | 100 | - | 3m€+78 | -24.5 |
The Goldman Sachs Group, Inc. | 4nc3 | 3y | 3.643% | 22-Jul-30 | €2bn | Sr Unsec | Fixed to Floating | 100 | 3.643% | MS+68 | -24.5 |
The Goldman Sachs Group, Inc. | 8nc7 | 7y | 4.102% | 22-Jul-34 | €1.75bn | Sr Unsec | Fixed to Floating | 100 | 4.102% | MS+105 | -22.5 |
Reoffer:
4nc3 FRN: 3m€+78bp / 100
4nc3 FXD/FRN: MS+68bp / 100 / 3.643%
8nc7 FXD/FRN: MS+105bp / 100 / 4.102%
Benchmark:
4nc3 FXD/FRN: OBL #189 2.1% 29-Apr-29 @ 98.245 / B+87.0bp / HR 109%
8nc7 FXD/FRN: DBR 2.3% 15-Feb-33 @ 96.175 / B+115.6bp / HR 104%
Tranche 1 (4nc3 FRN): Peak book >€2.7bn
Tranche 2 (4nc3 FXD/FRN): Peak book >€4.7bn
Tranche 3 (8nc7 FXD/FRN): Peak book >€5.4bn
Launched:
4NC3 FRN: €1.25bn @ 3m€+78bp - Books >€2.7bn
4NC3 FXD/FRN: €2.0bn @ MS+68bp - Books >€4.7bn
8NC7 FXD/FRN: €1.75bn @ MS+105bp - Books >€5.4bn
Spread set at:
4nc3 FRN: 3m€+78bp - Books >€2.6bn
4nc3 FXD/FRN: MS+68bp - Books >€4.4bn
8nc7 FXD/FRN: MS+105bp - Books >€4.2bn
Book Update: Combined books €8bn+ (4nc3 FRN: €2.2bn+, 4nc3 FXD/FRN: €2.7bn+, 8nc7 FXD/FRN: €3.1bn+)
IPTs:
4nc3 FRN: 3m€+100/105bp
4nc3 FXD/FRN: MS+90/95bp
8nc7 FXD/FRN: MS+125/130bp
- Issuer: The Goldman Sachs Group, Inc.
- LEI: 784F5XWPLTWKTBV3E584
- Ratings: A2 / BBB+ / A (Stab / Stab / Pos) (Moody's/S&P/Fitch)
- Ranking: Senior Unsecured, Unsubordinated
- Tenor:
- 4nc3 FRN
- 4nc3 Fixed to Floating
- 8nc7 Fixed to Floating
- Maturity:
- 4nc3 FRN: 22-Jul-30
- 4nc3 Fixed to Floating: 22-Jul-30
- 8nc7 Fixed to Floating: 22-Jul-34
- Optional Redemption Date:
- 4nc3 FRN: 22-Jul-29
- 4nc3 Fixed to Floating: 22-Jul-29
- 8nc7 Fixed to Floating: 22-Jul-33
- Size:
- 4nc3 FRN: €1.25bn
- 4nc3 Fixed to Floating: €2bn
- 8nc7 Fixed to Floating: €1.75bn
- Interest:
- 4nc3 FRN: 3mth€+78bps + reoffer margin, Quarterly ACT/360 until maturity
- 4nc3 FXD/FRN: 3.643% Annual ACT/ACT until Optional Redemption Date, then 3mth€ + reoffer margin, Quarterly ACT/360
- 8nc7 FXD/FRN: 4.102% Annual ACT/ACT until Optional Redemption Date, then 3mth€ + reoffer margin, Quarterly ACT/360
- ISIN:
- 4nc3 FRN: XS3447650907
- 4nc3 Fixed to Floating: XS3447651202
- 8nc7 Fixed to Floating: XS3447651111
- Par Call: Anytime 3mth prior to final maturity
- Settlement Date: 22-Jul-26 (T+5)
- Listing: Luxembourg Stock Exchange’s regulated market
- Denoms/Forms: €1,000 + €1,000 / Registered Form
- Law: New York
- Docs: Issuer’s EMTN Programme, Series F
- Use of Proceeds: General corporate purposes
- Selling Restrictions: US: RegS Only; No sales into Canada; EEA and UK: offers to Qualified Investors only
- Tax: US issuer, see Final Terms and Programme Base Prospectus on FATCA withholding
- Target Markets: Manufacturer target market (EU MIFID / UK MIFIR product governance is eligible counterparties and professional clients only (all distribution channels))
- Lead Bookrunner: Goldman Sachs International (B&D)
- Joint Lead Managers: CACIB / Erste Group / First Abu Dhabi Bank PJSC / Goodbody / La Banque Postale / Lloyds / Natixis / Nordea Bank Abp / Natwest / Nord/LB / SEB / TD Securities
- Co-leads: SMBC / MUFG
- Timing: Priced. FTT: 15:00 UKT / 16:00 CET. TOE: 14:34 UKT (4nc3 FRN) / 14:36 UKT (4nc3 FXD/FRN) / 14:39 UKT (8nc7 FXD/FRN)
- Details correct at time of posting