Commentary & Deal Flow

• Despite tomorrow’s ECB rate policy meeting, European € IG issuance saw activity with one sale from 1 issuer (1 x FIG) - Covivio  - which priced a €500m 7 year at MS+105. Covivio is a REIT, so arguably a Corp.
• The Swiss Franc IG international public market saw another tap issue of an existing bond, 1 issuer - IADB (1 x SSA) increased its Chf115m due June 2044 by Chf60m to take the outstanding amount to Chf175m.
• The Sterling IG market once again experienced a ‘zero-print-day’, although a mandate was announced for the AA Bond Co Ltd., with investor work commencing today.
• Having announced yesterday, L-Bank launched & priced its benchmark, US$ Reg S trade. The state backed issuer placed 3 year at SOFR MS+27.  
• Today’s European equity markets were in positive territory, with all indices across the Eurozone up from yesterday. The FTSE was the outperformer, up some 1.34% when going to print. Both the DX & CAC 40 were up c.1.0%. Brent marched ever higher, currently trading around $93.67 (over $2 higher since this morning). Having tightened yesterday - somewhat out of step - the VIX traded higher today at c.$17.27. 
• Buoyed by this morning's softer inflation data, the Gilt yield curve continued to edge higher today, flattening slightly as it added c.3bps to the short end, 3.2bps to the 10 year & c.1.5bps to the longer end. Elsewhere, Eurozone governments also saw upward pressure in yields, ahead of the ECB rate meeting & speeches tomorrow. 
• A breakdown of today’s primary € supply is as follows.
• • Corporate
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing 
    • Avg. cover  NA
  • FIG
  • • Total IG: €500m
    • Avg. tranche size €500m
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing -30 (unsecured)
    • Avg. cover 2.60 X
  • SSA
  • • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA
    • Avg. cover NA

• Pipeline: A £ mandate was announced today, for the AA Bond Co Ltd, commencing investor work today, with a view to issue in the near future, subject to market conditions. That aside, there are no €, Chf & $ transactions in the IG pipeline.
• • 1 X £ Corp
    

Talking Point

• With the ECB meeting tomorrow (23rd July), historical data offers a message: ECB days are, more often than not, quiet days in the primary market. Looking back across the last 12 ECB meetings, the € IG primary market has, with very few exceptions, opted to stay silent. Of the 12 dates in the table, 7 produced a complete blank across all 3 segments (Corp, FIG & SSA). That said, 5 saw at least some activity, which is a reminder that the market is not entirely averse to printing on decision days when conditions are favourable. Of those 5, the 5th of February 2026 stands out as the most active, pricing 6 deals via 9 tranches (€6.5bn), driven almost entirely by FIG. This was a ‘risk-on’ day, but very much the exception rather than the rule. The logic is straightforward: market participants stay alert, positioned & attentive around the rate decision, with all eyes on  Lagarde's press conference. Announcing prior to this on the day is just an execution risk for issuers that is simply not worth taking. As such, tomorrow is therefore likely to be another quiet day in the primary.

Euro IG (today)

• Covivio (exp. Issue rating of BBB+ by S&P) announced a €500m (wng) 7 year EuGB, due 29 July 2033 with IPTs in the area of MS+135. Final terms were set as €500m at MS+105, with an order book above €1.85bn (pre rec). Final books closed at  >€1.3bn.
• • A prominent European real estate company, managing a c. €24bn portfolio, a mix of offices, hotels & housing. Covivio’s public debt redemption profile appears to be well structured, with maturities in 2030, 2031, 2032 & 2034 - €500m for each tranche - and this new issue will slot in perfectly. 

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)

• IADB (exp. Issue ratings of Aaa / AAA by Moody’s & S&P) announced a Chf50m (min) tap of its existing Chf115m 1.235% due 17 June 2044, with guidance in the area of SARON MS+27.  Spread was set at SARON MS+27, and deal was upsized to Chf60m (min). Priced Chf60m. 
• • The issuer had issued this bond back in late May 2026 - terms above - & had also priced Chf185m 3 year in January. IADB only started accessing the Swiss market in mid 2024. Since then, it has managed to place some Chf865m to date. 

Week-to-date volumes:

US$ Reg S (today)

• L-Bank (exp. Issue ratings of Aaa / AA+ / AAA by Moody’s, S&P & Fitch), guaranteed by the Federal State of Baden-Wuerttemberg, announced a $ benchmark RegS 3 year yesterday, with IPTs in the area of SOFR MS+29. The timing for the issue is expected to be today’s business. Spread was set at SOFR MS+27, with IOIs in excess of $1.3bn (excl. JLM). Books grew by mid morning, standing in excess of $2.2bn (incl. $50m JLM). The size was set at $1.5bn and launched at SOFR MS+27, with books closed in excess of $2bn (excl.JLM). 
• • L-Bank is an active issuer in the public bond markets, its state guarantee ensures that it enjoys efficient and easy access. In 2026, thus far, its public bond footprint included $, £, €, HD$, A$ & JPY. 

Pending Deals & Mandates 

• 22nd July: AA Bond Co Ltd (exp. Issue rating of BBB by S&P) mandated Barclays, BNP Paribas, NatWest & Standard Chartered Bank as Active Bookrunners to arrange a series of fixed income investor meetings commencing Wednesday 22nd of July. A £ benchmark, Class A, senior, secured, RegS, Bearer, A14 Notes offering with a 4 year expected maturity (31st July 2030) is expected to follow, subject to market conditions.
• • The borrower only issues in the £ market. It last issued a senior secured offering in November of last year, when it brought a £375m 6.7yr with a coupon of 5.5%. In recent years the issuer traditionally issues a senior secured note 6 or 7 yrs. An expectation was in 2023 when it priced a 28yr £400m deal in January of that year. Its last senior unsecured print was back in 2022 when it priced a 7yr £250m. This is AA Bonds’ second public £ print as a BBB borrower. 

Transaction Details 

PRICED: Inter-American Development Bank CHF 60m Tap of 1.235% due June-2044 Sust; SARON MS+27

IGC European Market: Deal Flow - SSA

Reoffer: 18yr: SARON MS+27 / 101.024 / 1.1711%
Benchmark: 18yr: Govt + 52.1

Spread set at: 18yr: SARON MS+27bp
IPTs: 18yr: SARON MS+27a

• Issuer: Inter-American Development Bank (Ticker: IADB)
• Issuer Domicile: Supranational
• Domestic / Foreign: Foreign
• Format: Public Fixed-Rate Sustainable Development Notes
• Ranking: Senior unsecured
• Issuer Rating: Aaa (stable) / AAA (stable) (Moody's/S&P)
• Instrument Rating (exp): Aaa/AAA (Moody's/S&P)
• Issue Size: CHF 60m (new total size: CHF 175m)
• Coupon: 1.2350% p.a. (30/360, following unadj.)
• Maturity: 17-Jun-44
• Spread/Yield: SARON MS +27.0 // YTM 1.1711% // Govt + 52.1
• Issue Price: 101.024%
• ISIN / Valor: CH1590978123 / 159.097.812
• Accrued Interest: 50 days
• Original ISIN / Valor: CH1570292529
• Lead Manager(s): Deutsche Bank
• SNB Repo-eligibility: At the discretion of the SNB, expected yes (HQLA Level 1)
• Documentation: Off the Issuer's Global Debt Program dated 28-Jul-20
• FinSA Prospectus: No prospectus required in accordance with Art. 37(1) (h.) FinSA
• Governing Law: New York law
• SIX Listing: 05-Aug-26
• Use of Proceeds: IDB’s mission is to improve lives in Latin America and the Caribbean countries by contributing to the acceleration of the process of economic and social development and by supporting efforts to reduce poverty and inequality in a sustainable, climate friendly way. All projects undertaken by the IDB go through the Bank’s rigorous sustainability framework. The framework tracks measurable results, adherence to lending targets and the effectiveness of its environmental and social safeguards. The net proceeds from the sale of the notes will be included in the ordinary capital resources of the Bank, used in its ordinary operations, and will not be committed or earmarked for lending to, or financing of, any specific loans, projects, or programs. IDB’s administrative and operating expenses are currently covered entirely by IDB’s various sources of revenue, consisting primarily of net interest margin and investment income (as more fully described in the Information Statement).
• Framework: https://www.iadb.org/document.cfm?id=EZIDB0000550-1177496895-675
• Denomination: CHF 5,000 and multiples thereof
• Selling Restrictions: As described in detail in the Issuer’s Documentation. In particular United States of America, United Kingdom, Japan, and Singapore in accordance with the Global Debt Issuance Program dated 28 July 2020. RegS TEFRA D Rules apply, no communications with or into the US.
• Target Market: Manufacturer target market (MiFID II/UK MIFIR product governance) is eligible counterparties and professional clients (all channels for distribution channels). Public Offering in Switzerland only.
• Settle: 07-Aug-26

PRICED: Covivio €500m 7yr EuGB Sr Unsec; MS+105bp

IGC European Market: Deal Flow - General

Reoffer: 7yr: MS+105bp / 99.738 / 4.169%
Benchmark: 7yr: DBR 2.3% Feb-33 @ 95.86 / B+116.6bp / HR 104%

Final books > €1.3bn. Peak book above €1.85bn (pre rec)

Launched: 7yr: €500m @ MS+105bp - Book above €1.85bn (pre rec)
IPTs: 7yr: MS+135a

• Issuer: Covivio (Ticker: COVFP, Country: France)
• Issuer LEI: 969500P8M3W2XX376054
• Issuer Rating: BBB+ stable (S&P)
• Expected Rating of Notes: BBB+ (S&P)
• Format of Notes: Senior Unsecured, Unsubordinated, Reg S Bearer Dematerialised
• Settlement Date: 29-Jul-26 (T+5)
• Tranche: 7-year Fixed
• Maturity Date: 29-Jul-33
• Size: €500m
• Reoffer: MS+105bps / 99.738 / 4.169%
• Coupon: 4.125% Fixed, Annual, ACT/ACT
• Reference: +116.6bps vs DBR 2.3% 02/2033 TWIN (95.86) HR 104%
• ISIN: FR001401A6Z6
• Documentation: EMTN Programme / French Law / €100k+100k / Euronext Paris / Restriction on secured borrowings / Change of control (Put) / MWC (vs. Bund+20bps) / Clean-Up call (75%) / 3m Par-Call
• Use of Proceeds: The Notes are designated as “European Green Bond” or “EuGB” in accordance with Regulation (EU) 2023/2631 of the European Parliament and of the Council. The net proceeds will be fully allocated to fixed assets aligned to activities that are 100% environmentally sustainable under Article 3 of Regulation (EU) 2020/852, as detailed in the Issuer’s European Green Bond Factsheet, dated April 2025 and updated in April 2026
• Active Bookrunners: BBVA, Crédit Agricole CIB, Goldman Sachs Bank Europe SE, IMI-Intesa Sanpaolo, Mediobanca, Natixis (B&D)
• Target Market: The manufacturer target market (MIFID II/UK MIFIR product governance) is eligible counterparties and professional investors only (all distribution channels). No EU PRIIPs or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or the United Kingdom.
• Advertisement: The Base Prospectus dated 12 December 2025, the Supplement along with the final Terms, when published, will be available on the Autorité des marchés financiers website (https://www.amf-france.org) and on the issuer's website, where the Green Financing Framework and the SPO are also available (https://www.covivio.eu/en/finance/financing-and-public-offer/debt/).
• TOE / FTT: 14.36 UKT / 15.00 UKT

7yr (Jul 2033) @ MS+135 area

Implied Spread for fresh 7yr @ MS+100

Priced at MS+105
NIC of 5

PRICED: Landeskreditbank Baden-Wuerttemberg – Foerderbank (L-Bank) US$1.5bn 3yr Sr Unsec; SOFR MS+27

IGC European Market: Deal Flow - SSA

Reoffer: 3yr: SOFR MS+27bp / 99.79 / 4.451%
Benchmark: 3yr: CT3 4.125% 15-Jul-29 @ 99-14¼ / 4.325% / HR 102%

Final Books in excess of US$2bn (excl. JLM). Peak book in excess of US$2.2bn (incl. US$50m JLM interest)

Launched: 3yr: US$1.5bn @ SOFR MS+27bp - Books closed in excess of US$2bn (excl. JLM)
Book Update: Books in excess of US$2.2bn (incl. US$50m JLM interest)
Spread set at: 3yr: SOFR MS+27bp - IOIs in excess of US$1.3bn (excl. JLM)
IPTs: 3yr: SOFR MS+29a

• Issuer: Landeskreditbank Baden-Wuerttemberg – Foerderbank (L-Bank)
• Guarantee: Explicitly and unconditionally guaranteed by the German Federal State of Baden-Wuerttemberg
• Format: Senior unsecured bearer notes, Reg S Bearer, TEFRA D (NO SALES INTO USA)
• Rating: Aaa/AA+/AAA (Moody's/S&P/Fitch)
• ESG Rating: AAA/Low Risk/Prime (MSCI/Sustainalytics/ISS ESG)
• Docs/List: DIP/German law/Lux
• Maturity: 30-Jul-29 (3Y)
• Settlement: 30-Jul-26 (T+6)
• Coupon: 4.375%, Fixed, Annual, 30/360
• Size: US$1.5bn
• Reoffer: 99.790 / 4.403% (S/A) / 4.451% (A)
• Final Spread: SOFR MS (SA 30/360) +27bps
• UST ref: +7.78bps vs. CT3 (T 4 ⅛ 15-Jul-29 @ 99-14¼ / 4.325% / HR 102%)
• Leads: Barc / BMO / DB (DM/B&D) / RBC CM
• Denominations: US$1k+US$1k
• ISIN: XS3455113186
• Timing: Priced. TOE: 15:05 LDN / 16:05 CET / 10:05 ET. FTT Immediately.
• Target Market: Manufacturer target market (MiFID II product governance) is eligible counterparties and professional investors
• Advertisement: This communication is an advertisement for the purposes of Regulation (EU) 2017/1129 and underlying legislation. It is not a prospectus. The prospectus is available at: https://www.bourse.lu/issuer/LKrBkBadenWurtt/43647

• Details correct at time of posting