Commentary & Deal Flow

• European € IG issuance remained open, if quiet, with a single print from 1 issuer (1 x FIG) - Mitsubishi HC Capital UK Plc - which priced a €500m 3 year. 
• The Swiss Franc IG international public market saw 1 issuer - NRW Bank (1 x SSA) tap its existing November 2040 deal for Chf50m to take the outstanding size to Chf205m. 
• The Sterling IG market was once again quiet, with no deals or mandate announcements.
• The US$ Reg S market saw an announcement at the end of the day with a new $ benchmark from L-Bank. The 3 year offering will be tomorrow’s business, with IPTs in the area of SOFR MS+29. 
• Today’s equity markets were mixed with the FTSE & EuroStox higher, but the DAX & CAC 40 in the red. Brent edged slightly higher throughout the trading session, to again push through $90 to c.$91.36. The VIX having drifted lower earlier in the European session backed out again to c.$17.85 in tandem with the rising oil price.
• The Gilt curve continued to be range bound, as the market digested Andy Burnham’s cabinet appointments made after yesterday’s close. The 10 year continues to hover over the 5.0% level, currently c.5.046%. 
• A breakdown of today’s primary € supply is as follows.
• • Corporate
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing 
    • Avg. cover  X
  • FIG
  • • Total IG: €500m
    • Avg. tranche size €500m
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing  -27 (unsecured)
    • Avg. cover NA
  • SSA
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA
    • Avg. cover NA

• Pipeline: Late in the afternoon, L-Bank announced its new $ benchmark 3 year Reg S offering, taking IOIs & expecting to price tomorrow. That aside, there are no €, £ & Chf transactions in the IG pipeline.

Talking Point

Yesterday's weekly breakdown told one part of the story - today's segment data expands on the detail. Digging beneath last summer's Euro volumes, it is FIG that emerges as the top contributor, bringing  €39.4bn across 44 deals & 47 tranches. This comfortably outpaces both Corp (€22.1bn) & SSA (€20.6bn) over the period. € Corp supply was heavily back-loaded last summer, with €14.7bn landing in the last week alone - suggesting that corporate credits are more reluctant to test the market early during the holiday period; preferring instead to move swiftly & decisively once the window is clearly open. € SSA’s only began to feature from mid-August, building steadily to €10.35bn in that final week. In Sterling, the picture was more muted but the seasonal rhythm was the same, namely, mid-August a virtual blank across all three segments, before FIG leading the charge with £2.4bn delivered late July through the end of August.

Euro IG (today)

• Mitsubishi HC Capital UK PLC (exp. Issue rating of A- by S&P), guaranteed by Mitsubishi HC Capital Inc., announced a €500m (wng) 3 year, due 28 July 2029 with IPTs in the area of MS+85. Guidance was announced late in the morning in the area of MS+60. The order book was in excess of €1.4bn at this point. The deal was launched with the spread set at MS+58 & the books were over €1.28bn at guidance. The final book fell to >€915m. 
• • One of the UK’s leading consumer credit lenders is a frequent and active visitor to both public and private debt capital markets. Its funding mix in 2026, to date, has included the following currencies JPY, HK$, US$ & €, the Yen being its core market. This offering was the issuer’s first public € transaction of 2026, its previous print being in 2025 placing €500m 3 year at MS+60.
    

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)

• Federal State of North Rhine-Westphalia, announced a Chf50m (min) tap of its existing Chf155m 0.8425% due 12 November 2040, with guidance in the area of SARON MS+30. The trade priced Chf50m at SARON MS+30. 
• • Prior to today’s deal, the issuer has visited the Swiss market twice already in 2026, placing a Chf150m 15yr & then tapping this bond by Chf50m a few months later. 

Week-to-date volumes:

US$ Reg S (today)

• L-Bank (rated Aaa, AA+, AAA by Moody’s, S&P & Fitch) announced a Reg S, benchmark US$ offering. The 3 year offering will be tomorrow’s business, with IPTs in the area of SOFR MS+29. 

Pending Deals & Mandates 

• None

Transaction Details 

PRICED: NRW.Bank CHF 50m Tap of 0.8425% Nov-40 Social; SARON MS+30

IGC European Market: Deal Flow - SSA

Reoffer: Long 14yr: SARON MS+30 / 95.873 / 1.1582%
Benchmark: Long 14yr: Govt.+55

Launched: Long 14yr: CHF 50m @ SARON MS+30bp
Spread set at: 14yr: SARON MS+30bp
IPTs: 14yr: SARON MS+30a

• Issuer: NRW.Bank (Ticker: NRWBK)
• Guarantor: Federal State of North Rhine-Westphalia (NRW)
• Guarantor Domicile: Germany
• Format: Public Fixed-Rate Social Notes
• Status: Senior unsecured
• Guarantor Rating: Aa1/AA/AAA/AAA (Moody's/S&P/Fitch/Scope)
• Expected Issue Ratings: Aa1/AA/AAA/AAA (Moody's/S&P/Fitch/Scope)
• Size: CHF 50m (new total size of CHF 205m)
• Settlement Date: 11-Aug-26
• Maturity: 12-Nov-40
• Coupon: 0.8425% p.a.
• Issue Price: 95.873%
• Reoffer: SARON MS +30.0 / YTM 1.1582% / Govt.+55
• ISIN / Security Number: CH1580409196 / 158040919
• Accrued interest: 269 days
• Original ISIN: CH1485827187
• Lead Manager: UBS
• SNB Repo-eligibility: At the discretion of the SNB, expected yes (HQLA: Level 1)
• Documentation: Off the Issuer’s Alleviated Prospectus of NRW.BANK dated 30-Apr-26
• FinSA Prospectus: Delayed prospectus approval in accordance with Article 51(2) FinSA
• Governing Law: German
• Covenants: PP
• Listing: 07-Aug-26, SIX
• Denomination: CHF 5,000
• Use of Proceeds: An amount equivalent to the net proceeds raised from any NRW.BANK Social Bond issued under the NRW.BANK Social Bond Framework dated May 2025 (as amended or restated from time to time, the NRW.BANK Social Bond Framework) (including the Notes) will be exclusively applied to finance, in part or in full, new eligible social expenditures (Eligible Social Projects) and/or to refinance, in part or in full, existing Eligible Social Projects as listed in the NRW.BANK Social Bond Framework
• Sales Restrictions: In particular, United States of America, European Economic Area, United Kingdom, Belgium, France, Germany, Italy, Luxembourg, Canada, Japan, and/or such other restrictions as may be required in connection with the offering and sale of the Notes. RegS TEFRA D Rules apply, no communications with or into the US.

PRICED: Mitsubishi HC Capital UK €500m 3yr Sr Unsec; MS+58bp

IGC European Market: Deal Flow - General

Reoffer: 3yr: MS+58bp / 100 / 3.599%
Benchmark: 3yr: OBL 2.1 29-Apr-29 #189 @ 98.15 / B+78.5bp / HR 110%

Final book >€915m. Peak book in excess of €1.4bn.

Launched: 3yr: €500m @ MS+58bp - Books over €1.28bn
Guidance: 3yr: MS+60a - Book in excess of €1.4bn
IPTs: 3yr: MS+85a

• Issuer: Mitsubishi HC Capital UK PLC
• Issuer LEI number: 549300P4PHVCL0EZU771
• Guarantor: Mitsubishi HC Capital Inc.
• Guarantor LEI number: 353800MZ3QX9RLMH7B09
• Guarantor Rating: A3 / A- / A- (Moody's/S&P/Fitch) (all stable)
• Expected Issue Rating: A- (S&P)
• Format and Ranking: Senior, Unsecured, Bearer, NGN
• Currency/Size: €500m
• Pricing Date: 21-Jul-26
• Settlement Date: 28-Jul-26 (T+5)
• Maturity Date: 28-Jul-29
• Reoffer: MS+58bp, Px 100, Yld 3.599%
• Benchmark: OBL 2.1 29-Apr-29 #189 (@98.15) + 78.5bps, HR 110%
• Use of Proceeds: General corporate purposes
• Interest Payment: 3.599%, annually in arrear, payable on 28 July in each year commencing on 28-Jul-27 up to and including the Maturity Date
• Early Redemption: Make Whole + 15bps, 1 month par call
• Day Count Fraction: Actual/Actual (ICMA)
• Business Day Convention: Following, Unadjusted
• Business Days: London, T2
• Listing: London Stock Exchange (Main Market)
• Clearing: Euroclear and Clearstream, Luxembourg
• Governing Law: English law
• ISIN / Common Code: XS3450069748 / 345006974
• Denominations: EUR 100,000 and integral multiples of EUR 1,000 in excess thereof
• Documentation: The Issuer’s USD 12,500,000,000 Euro Note Programme, including the Offering Circular dated 29-Aug-25, as supplemented by Supplemental Offering Circulars dated 29-Sep-25, 14-Nov-25 and 17-Jul-26
• Selling Restrictions: Reg S, Cat 2 No sales to retail investors in the EEA or the UK Japan, PRC, Hong Kong, Singapore, Taiwan, Australia as set out in the Offering Circular
• Target Market: MiFID II/UK MiFIR professionals/ECP-s only. No EU PRIIPs or UK disclosure document required by DISC has been prepared as not available to retail in the EEA or UK.
• Fees: The Joint Lead Managers will be paid a fee in connection with this transaction
• Joint Lead Managers: BNP Paribas, MUFG, NatWest(B&D)
• Timing: PRICED, TOE 14:35 LDN, FTT 15:00 LDN
• Advertisement: The Offering Circular and the Supplemental Offering Circulars are, and the final terms, when published, will be, available on the website of the London Stock Exchange.

• Details correct at time of posting