Commentary & Deal Flow

• Geopolitical tensions remained overnight, yet the primary market stayed open for business. Supply was subdued, as it has been all week, as we head into the Summer lull. In the € IG market, 1 issuer (1 x Corp) - John Deere Bank SA - was able to successfully price a 4.25 year for €600m. 
• While the Sterling & US$ Reg S markets saw a zero-print day, we did have a Chf IG AAA trade from 1 issuer (1 x SSA), pricing Chf200m, via 1 tranche.
• A breakdown of today’s primary € supply is as follows.
• • Corporate
  • • Total IG: €600m
    • Avg. tranche size €600m
    • Avg. IPT to Pricing -34.5
    • Avg. cover 4.0 X
  • FIG
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing (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.

Talking Point

• To illustrate just how quiet this week has been in € IG, it ranks as the quietest week of the year so far (with Friday still to come). For context see the table below which ranks the busiest weeks in the € IG market YTD.

Euro IG (today)

• John Deere Bank SA (Exp. Issue ratings A1 / A / A+ by Moody’s, S&P & Fitch), guarantor John Deere Capital Corporation, announced a €500m (exp) 4.25 year, senior unsecured offering with IPTs in the area of MS+75 to +80. By late morning, size was set at €600m with guidance in the area of MS+45 (+/- 2bps WPIR), supported by an orderbook of over €2.4bn (pre-rec). Launch was €600m at MS+43 with a final book over €2.4bn, good at tight end of guidance. 
• • The guarantor is a frequent Issuer in the $ primary bond markets - having printed over $3bn so far this year. Its last foray into the € public markets was in Q3 2025 when it placed a €500m 3yr at MS+38. Today’s transaction would indicate that the issuer is prefunding a maturing €600m due September 2026 (issued in 2022 as a 4yr bullet at MS+30), so the final issue size is likely to reflect this (at €600m).

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)

• European Investment Bank (Issuer ratings Aaa / AAA / AAA by Moody’s, S&P & Fitch), announced Chf150m 15 year Sustainable offering with guidance in the area of SARON MS+25. Final terms were set at Chf200m at SARON MS+25 by mid morning & priced shortly after. 
• • This is EIB’s 3rd public sale in the Chf market this year, having already raised Chf160m via a 10yr & Chf150m with a 12yr. EIB has in excess of Chf2.5bn of outstanding debt in Switzerland, & this transaction will be its longest tenor yet issued in Chf.

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates 

• None

Transaction Details 

PRICED: John Deere Bank €600m Long 4yr Sr Unsec; MS+43bp

IGC European Market: Deal Flow - General

Reoffer: Long 4yr: MS+43bp / 99.913 / 3.425%
Benchmark: Long 4yr: 58.6bps vs OBL 2.2 10-Oct-30 #192 @97.48 / 2.839% (HR: 100%)

Final Books in excess of €2.4bn. Peak book over €2.4bn (pre-reconciliation)

Launched: Long 4yr: €600m @ MS+43bp - Books over €2.25bn
Guidance: MS+45a (+/-2bps) WPIR - Books over €2.4bn (pre-reconciliation)
IPTs: MS+75-80bp

• Issuer: John Deere Bank S.A. (Country: LU)
• Guarantor: John Deere Capital Corporation (Country: US; Ticker: DE)
• Issuer LEI: RUOKPID0PZ0UWJYU9J61
• Issuer Ratings: A1 (Stable) / A (Stable) / A+ (Stable)
• Exp. Issue Ratings: A1 / A / A+
• Ranking: Senior Unsecured
• Format: EMTN Programme, Reg S, Category 2, Registered
• Settlement: 23-Jul-26 (T+5)
• Currency: EUR
• Size: €600m
• Maturity Date: 15-Oct-30
• Re-offer: MS+43bps / 99.913 / 3.425%
• Benchmark: 58.6bps vs OBL 2.2 10-Oct-30 #192 @97.48 / 2.839% (HR: 100%)
• Coupon: 3.400%, Fixed, Annual, ACT/ACT (ICMA) (short first)
• Documentation: EMTN Programme (Base Prospectus dated 10-Jun-26)
• Law: English Law
• Listing: Euronext Dublin
• Denoms: €100k x €1k
• Target Market: Manufacturer target market (MIFID II and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EU PRIIPs key information document (KID) or product summary or disclosure document required by the FCA Product Disclosure Sourcebook has been prepared as the notes are not available to retail in EEA or UK
• Stabilization: Relevant stabilization regulations including FCA/ICMA apply
• Clearing: Euroclear and Clearstream, Luxembourg
• Optional Redemption: None
• Use of Proceeds: General corporate purposes
• Selling Restrictions: See the EMTN Programme Base Prospectus dated 10-Jun-26
• Sales into Canada: No
• Active Bookrunners: BNPP / CA-CIB / DB (B&D) / HSBC / JPM
• ISIN: XS3438591128
• Timing: TOE: 14:24 UKT | FTT: 14:45 UKT

4.25yr (Oct 2030) @ MS+75-80
Implied Spread for fresh 4.25yr @ MS+37
Priced at MS+43
NIC of +6

• Details correct at time of posting