Commentary & Deal Flow

• With confidence slowly returning to financial markets today, as tensions in the Middle East eased over the weekend, it was no surprise to see supply in € & Sterling. There was a multiple-tranche print from 1 issuer (1 x Corp) - AT&T Inc., which launched & priced a €4.1bn 4-tranche and a £550m tranche. 
• There was no issuance in the Swiss Franc & Reg S $ IG primary market today. 
• Despite the Summer lull, the primary debt markets have proved that they remain receptive to new issuance. Equities in Europe completed a positive session, with all exchanges posting good gains across the board. DAX performed the best, up at c.1.60% by late afternoon. European government bonds, as well as UK Gilts, mirrored the positive tone across financial markets, which saw bond yields fall during the day. 
• Brent crude oil fell to trade c.$90 early in the day, down from last Friday’s headline highs of just above $100. It remained in the c.$90 range for the rest of the day. 
• The VIX index drifted lower during the day, settling c.19.51 at the back end of the European session.
• A breakdown of today’s primary € supply is as follows.
• • Corporate
  • • Total IG: €4.10bn
    • Avg. tranche size €1.025bn
    • Avg. IPT to Pricing -27.5
    • Avg. cover  2.24 X
  • 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.

Talking Point

• With AT&T Inc in the market today across a multi-currency format (4 € tranches & 1 £ tranche) it is worth casting an eye over the lineup of dual-currency deals which have priced in 2026. Ten transactions have now taken this route across the year, with Corp issuers firmly in the driving seat - eight of the ten deals sitting in that segment, with only Goldman Sachs & Morgan Stanley representing FIG. The format has proven popular with US names in particular; Verizon, GM Financial & now AT&T all opting for the dual-currency approach, alongside NTT Finance Corp who makes a notable second appearance having priced in both February & June. The largest transaction of the lineup in € equivalent terms was Stellantis NV in March - €4bn across 2 tranches plus £865m on the £ leg, a standout print by some distance. In terms of structure, the € leg has consistently carried the heavier lifting, with the £ tranche typically a single-line add-on, a pattern today's AT&T deal appears to follow.

Euro IG (today)

• AT&T Inc (exp. Issue ratings Baa2 / BBB / BBB+ by Moody’s, S&P & Fitch) announced a new SEC Registered multi-tranche € benchmark offering (with a £ benchmark 26-year tranche), via Barclays, Citi, GS and Wells Fargo. IPTs for each tranche was as follows: 4yr MS+95a, 8yr MS+135/140, 12yr MS+160/165 & 19yr MS+200a. Spreads were set for 4, 8, 12 & 19-year tranches supported by books of €3bn+, €3.2bn+, €2.5bn+ & €2.3bn+ respectively, pre-rec. Final terms came in with a total  issue of €4.1bn. Final books were 4yr at €2.5bn+, 8yr at €2.7bn+, 12yr at €2.2bn+ & 19yr at €1.8bn+.  
• • AT&T’s € curve is well established, having placed a total of €5bn in 2025, in 2 separate visits. Issuer has just above €20.5bn of existing € debt, with an average maturity of 5.42 years. 

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• AT&T Inc (exp. Issue ratings Baa2 / BBB / BBB+ by Moody’s, S&P & Fitch) announced a new SEC Registered £ benchmark 26-year tranche, via Barclays, Citi, GS and Wells Fargo, alongside a multi-tranche € benchmark with IPTs in the area of UKT+150. Spread was set at UKT+140 with an expected size of £500m, and an orderbook of £1.1bn+ (pre-rec). Final terms were set as £550m at UKT+140. The final book was £1bn+. 
• • AT&T’s last issuance in £ was back in 2018, when it placed £750m 8 year at UKT+170, this bond matures in December 2026. The issuer has currently just above £5bn of outstanding debt in the market. 

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: AT&T Inc. €4.1bn & £550m 5-part Sr Unsec; MS+65 / MS+110 / MS+135 / MS+175 & UKT+140

IGC European Market: Deal Flow - General

Reoffer:
4yr: MS+65bp / 99.824 / 3.648%
8yr: MS+110bp / 99.726 / 4.191%
12yr: MS+135bp / 99.864 / 4.565%
19yr: MS+175bp / 99.76 / 5.07%
26yr: UKT+140bp / 99.823 / 7.065%

Benchmark:
4yr: OBL 2.400% 18-Apr-30 @ 98.505 / B+82.1bp / HR 106%
8yr: DBR 2.200% 15-Feb-34 @ 94.605 / B+118.3bp / HR 103%
12yr: DBR 1.000% 15-May-38 @ 77.97 / B+128.2bp / HR 108%
19yr: DBR 2.500% 04-Jul-44 @ 86.7 / B+155.8bp / HR 99%
26yr: UKT 3.750% 22-Jul-52 @ 74.110 / HR 108%

Tranche 1 (4yr): Final Books €2.5bn+. Peak book €3bn+ (pre-rec)
Tranche 2 (8yr): Final Books €2.7bn+. Peak book €3.2bn+ (pre-rec)
Tranche 3 (12yr): Final Books €2.2bn+. Peak book €2.5bn+ (pre-rec)
Tranche 4 (19yr): Final Books €1.8bn+. Peak book €2.3bn+ (pre-rec)
Tranche 5 (26yr): Final Books £1bn+. Peak book £1.1bn+ (pre-rec)

Launched:
4yr: €1bn @ MS+65bp - Books €2.8bn+ (pre-rec)
8yr: €1.25bn @ MS+110bp - Books €3.1bn+ (pre-rec)
12yr: €1bn @ MS+135bp - Books €2.5bn+ (pre-rec)
19yr: €850m @ MS+175bp - Books €2.3bn+ (pre-rec)
26yr: £550m @ UKT+140bp - Books £1.1bn+ (pre-rec)

Spread set at:
4yr: MS+65bp - Books €3bn+ (pre-rec)
8yr: MS+110bp - Books €3.2bn+ (pre-rec)
12yr: MS+135bp - Books €2.5bn+ (pre-rec)
19yr: MS+175bp - Books €2.3bn+ (pre-rec)
26yr: UKT+140bp - Books £1.1bn+ (pre-rec)

IPTs: 4yr: MS+95a 8yr: MS+135/140bp 12yr: MS+160/165bp 19yr: MS+200a 26yr: UKT+150a

• Issuer: AT&T Inc. (Ticker: T; Country: US)
• Issuer LEI: 549300Z40J86GGSTL398
• Current Issuer Ratings: Baa2 (Stable) / BBB (Stable) / BBB+ (Negative Outlook) (Moody's/S&P/Fitch)
• Expected Issue Ratings: Baa2 / BBB / BBB+ (Moody's/S&P/Fitch)
• Format: SEC Registered, Senior Unsecured
• Settlement: 03-Aug-26 (T+5)
• Size:
• • 4yr: €1bn
  • 8yr: €1.25bn
  • 12yr: €1bn
  • 19yr: €850m
  • 26yr: £550m
• Maturity:
• • 4yr: 03-Aug-30
  • 8yr: 03-Aug-34
  • 12yr: 03-Aug-38
  • 19yr: 03-Aug-45
  • 26yr: 03-Aug-52
• Re-offer:
• • 4yr: MS+65bp / 99.824 / 3.648%
  • 8yr: MS+110bp / 99.726 / 4.191%
  • 12yr: MS+135bp / 99.864 / 4.565%
  • 19yr: MS+175bp / 99.76 / 5.07%
  • 26yr: UKT+140bp / 99.823 / 7.065%
• Coupon:
• • 4yr: 3.600% Fixed, Annual, ACT/ACT (ICMA)
  • 8yr: 4.150% Fixed, Annual, ACT/ACT (ICMA)
  • 12yr: 4.550% Fixed, Annual, ACT/ACT (ICMA)
  • 19yr: 5.050% Fixed, Annual, ACT/ACT (ICMA)
  • 26yr: 7.050% Fixed, Semi-Annual, ACT/ACT (ICMA)
• Make-whole calls:
• • 4yr: B+15
  • 8yr: B+20
  • 12yr: B+20
  • 19yr: B+25
  • 26yr: G+25
• Par Call:
• • 4yr: Yes, 1-month
  • 8yr: Yes, 3-month
  • 12yr: Yes, 3-month
  • 19yr: Yes, 6-month
  • 26yr: Yes, 6-month
• Docs: SEC Registered / New York Stock Exchange Listing / New York Law
• Denominations:
• • EUR tranches: €100k+1k
  • GBP tranche: £100k+1k
• Clearing: Euroclear and Clearstream
• UoP: The Issuer intends to use the net proceeds from this offering for general corporate purposes.
• Sales into Canada: Yes, via exemption
• Sales into Japan: Yes, via exemption
• Selling Restrictions: As per the Issuer's prospectus supplement
• Stabilization: FCA/ICMA
• Target Market: MiFID II and UK MiFIR professionals / ECPs-only / No PRIIPs KID or DISC Disclosure Document
• Joint Actives: Barclays / Citigroup (B&D) / Goldman Sachs & Co. LLC / Wells Fargo Securities
• ISIN:
• • 4yr: XS3458960823
  • 8yr: XS3458961045
  • 12yr: XS3458961128
  • 19yr: XS3458961391
  • 26yr: XS3458961474
• Time of Execution:
• • 4yr: 16h22 UKT
  • 8yr: 16h21 UKT
  • 12yr: 16h20 UKT
  • 19yr: 16h19 UKT
  • 26yr: 16h23 UKT
• FTT: Subject to the Final Term Sheet (TBD)

4yr (Aug 2030) @ MS+95a
Implied Spread for fresh 4yr @ MS+60
Priced at MS+65
NIC of +5

8yr (Aug 2034) @ MS+135/140
Implied Spread for fresh 8yr @ MS+100
Priced at MS+110
NIC of +10

12yr (Aug 2038) @ MS+160/165
Implied Spread for fresh 4yr @ MS+120
Priced at MS+135
NIC of +15

19yr (Aug 2044) @ MS+200a
Implied Spread for fresh 4yr @ MS+150
Priced at MS+175
NIC of +25

26yr (Aug 2052) @ UKT+150a
Implied Spread for fresh 4yr @ UKT+120
Priced at UKT+140
NIC of +20

• Details correct at time of posting