Commentary & Deal Flow

• Today saw a marked change in market sentiment. Having enjoyed a couple of stable days in the Middle East conflict, with operations on hold by both sides since the weekend, the moratorium was broken overnight. The US said that it had thwarted overnight missile attacks launched by Iran, aimed at US military targets and assets in the region. Oil reversed its downward trend and started rising, albeit slowly, as global markets feared a renewed escalation of attacks by both sides. Tonight will see the FOMC meeting to set base rate, although market participants do expect rates to remain on hold, many will be hoping for some forward guidance. Likewise, with the BoE MPC meeting set for Thursday morning, new issuance was expected to be very limited. Despite this, a solitary £ offering was launched & priced today - a structured senior secured  £ IG transaction (details below). 
• There was no issuance for a second day in the €, Reg S $ & Swiss IG primary markets today. 
• Equities in Europe & UK had a mixed day. The FTSE, DAX & OMX showed gains of c.0.19%, c.0.15% and 0.29% respectively. The CAC40 & IBEX35 lost 0.70% & 1.13%, due in part to the ongoing concerns with the wild fires in France & Spain, & their likely impact on these economies. Eurozone government bond yields slipped through the day. Gilts had a poor day with the 10 year yield rising back towards the 5%  level.  
• Brent crude oil rose in early trading due to overnight developments in the Middle East. However as European trading hours passed by, prices stayed in the trading of c.$89. 
• The VIX index remained rangebound most of the day, in the c.$18 area, in a low turnover environment.
• 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: €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

• Switching focus to GBP, today's table maps the IPT-to-pricing tightening journey across Corp, FIG & SSA through 2026. The picture is a notably more uneven one than the EUR equivalent. Volumes tell the first part of the story; the GBP market operates on a different scale entirely, with SSA the clear engine room in size terms, led by January's £19.85bn, yet the segment where tightening has been most minimal, with May even registering 0.00bps. Corp, by contrast, has punched above its weight in tightening terms, with March's -36.25bps standing out as the most aggressive print across any segment in any month. This is a remarkable outcome given the broader macro turbulence of that period & a testament to just how selective but receptive the GBP Corp bid can be when it shows up. FIG has arguably been the backbone of the GBP market in 2026, the most consistently active segment month-to-month, with tightening holding in a reasonable range & July's -20.10bps & 2.58x cover suggesting the segment remains open for business deep into summer. If the EUR table painted a picture of broad-based resilience, the GBP read is one of a market that is thinner, more episodic & at times unpredictable, but entirely capable of delivering when the stars align.

Euro IG (today)

• No Supply

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• Equinix xScale Secured Funding 2026-1 DAC (exp Issue ratings A3 / A by Moody's & S&P) announced a transaction for £280m senior secured notes, via sole lead Goldman Sachs. The offering had a final maturity of 30 September 2046 - but an anticipated repayment date (ARD) of 30 September 2031, 5.2 years. Spread was set at the announcement at UKT+130. Final terms were set at midday as £280m at UKT+130, backed by books over £485m (no JLM). Final books closed over £510m. 
• • The issue is structured to include post ARD additional interest, to step up to 5% per annum, if the notes are not repaid by first ARD. No principal repayment prior to ARD & 100% sweep post ARD. Cash trap conditions apply; LTV is > than 75%, &/or DY is < than 7.75%. Other covenants apply, listed in the OC. 
    

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: Equinix xScale Secured Funding 2026-1 DAC £280m Long 5yr Snr Sec; G+130

IGC European Market: Deal Flow - General

Reoffer: Long 5yr: G+130bp / 100 / 5.788%
Benchmark: Long 5yr: UKT 0.25 31-Jul-31 @ 81.198 / HR 111%

Final books over £510m (no JLM)

Launched: 5yr: £280m @ G+130bp - Books over £485m (no JLM)
Spread set at: 5yr: G+130bp

• Issuer: Equinix xScale Secured Funding 2026-1 DAC (Ticker: EQIXXS)
• Exp. Ratings: A(sf) / A3 (sf) (Stable/Stable S&P/Moody’s)
• Format: Senior, secured, Reg S Registered
• Settlement: 04-Aug-26
• Anticipated Repayment Date (ARD): 30-Sep-31 (5 years)
• Final Note Maturity: 30-Sep-46
• Size: £280m
• Reoffer: 100.00 / Mid Gilts +130bps / 5.788% (S/A) / 5.872% (Ann)
• Benchmark: UKT 0.25 31-Jul-31 @ 81.198 (mid) / 81.178 (bid) / HR 111%
• Coupon: 5.7492% Fixed, Quarterly, ACT/ACT (ICMA)
• Post ARD Additional Interest: 5.00% p.a. step up if notes are not repaid by First ARD and is subordinated to the coupon and principal repayment. Full terms as set out in prospectus
• Principal Repayment: None prior to ARD, 100% sweep post ARD
• Cash Trap Conditions: LTV is greater than 75%; and /or DY is less than 7.75%
• Docs: Prospectus / GEM Listing / English Law
• Denoms: £100k+£1k
• UoP: To repay the existing intercompany indebtedness, make a distribution to equity holders, fund transaction-related expenses and for general corporate purposes
• Optional Redemption: MWC (@ UKT+20bps), 3m Par-Call
• Covenants: As per Prospectus
• Sole Arranger: Goldman Sachs International
• Sole Bookrunner: Goldman Sachs International
• B&D: Goldman Sachs International
• ISIN: XS3444057197
• Target Market: Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in EEA
• Stabilisation: FCA / ICMA
• Timing: PRICED – TOE 13:32 LDN / 14:32 CET FTT 14:00 LDN / 15:00 CET

• Details correct at time of posting