• Today saw the first primary bond supply of the week with 1 € IG (1 x corp) & 1 CHF IG (1x FIG)  Eurogrid GmbH broke the market duck with the first deal announced in August, followed shortly after by MunHyp tapping the Swiss market with a CHF 12-year Green CB.
• The Eurogrid new issue was very well received, achieving a final book above €2.7bn, down from a peak book of €4.2bn (pre-rec). Nevertheless, pricing tightened from IPTs of  MS+140-145 to price at MS+108, effectively representing a slightly negative new issue concession of -1bp to FV. The issuer has a well established credit curve in €, which helped to pinpoint the new 12-year offering accurately & effectively. Indeed, the grey market prior to pricing was seen quoted in the OTC cash market at reoffer +10c/+20c, a healthy performance premium in a quiet market.  
• There was no other supply today in IG £ or RegS $ primary bond markets. 
• News headlines during the day remained muted, providing no real direction for bond markets> However, this could be said to point to a neutral market for the rest of the week, notwithstanding negative developments in the Middle East. 
• Today’s corporate issue for Eurogrid seems to strongly suggest that market participants will closely consider new offerings tabled, given the prevailing stable geo-political environment. This could of course all change overnight.
• Equity markets in Europe enjoyed another day of small gains across the board, with screens lit up in green.  
• Brent crude oil spent much of the morning session in a narrow price range, from the European open between $83 & $84. The afternoon trading saw Brent ease further down to around the $80 big figure. VIX was mostly unchanged all day, as financial markets were stable to unchanged, drifting lower to c.$15.50. 
• A breakdown of today’s primary € supply is as follows.
  • Corporate
    • Total IG: €500m
    • Avg. tranche size €500m
    • Avg. IPT to Pricing -34.5
    • Avg. cover 5.40 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

• Today's table turns the spotlight on the € Corp segment in 2026, breaking down the €262.49bn of issuance across 225 deals & 385 tranches by sector to identify where the real volume has come from. The answer is Utilities, which has been the single largest contributor to EUR Corp supply this year, printing €55.71bn across 56 deals & 83 tranches & accounting for 21.2% of total Corp volume. The sector's capital-intensive nature & structural need for long-term funding has once again made it the most consistent & prolific presence in the € Corp primary market. Consumer Discretionary has been a close second, contributing €50.00bn across 33 deals & a 19.0% share, while Communication Services rounds out the top three with €34.30bn & a 13.1% share. Industrials deserves a mention as the busiest sector by deal count with 46 deals, yet its €30.60bn volume & 11.7% share reflects the typically smaller transaction sizes that characterise the sector. At the other end of the spectrum, Health Care & Energy have been the lightest contributors in volume terms, each sitting just above €10bn & combined accounting for just 8.3% of total supply. The dominance of the top two sectors is hard to ignore. Utilities & Consumer Discretionary have between them printed more than €105bn, comfortably outpacing the remaining eight sectors combined on a per-sector basis. 

Euro IG (today)

• Eurogrid GmbH (Exp. rating BBB by S&P) announced a €500m (exp) 12 year EuGB bond offering, due 18 August 2038 with IPTs in the area of MS+140-145. Guidance came in the area of MS+115, supported by a book at €3.7bn+ (pre-rec). Final terms were set at €500m at MS+108, with the book having grown to €4.2bn+ (pre-rec, good at guidance). Final book closed above €2.7bn. 
  • Eurogrid has already tapped the bond market 3 times in 2026, via 2 Schuldschein sales via BayernLB - €325m 5yr FRN & €325m 7yr FRN - as well as a PP - €104m 14yr. It has a well established redemption curve, and this new 12yr will extend its average tenor further from its current average of +6 years. 

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)

• Muenchener Hypothekenbank eG - MunHyp - (Exp. issue rating Aaa Moody’s) announced a CHF100m (min) 9 year green covered bond, due 27 August 2035, with guidance in the area of SARON MS+33-34. The spread was set at SARON MS+33, with a new minimum of CHF125m. A new minimum size of CHF160m was announced shortly after. Final terms were sized at CHF170m.
  • MunHyp tapped the CHF earlier this year, in January 2026 with CHF165m 7 year priced at SARON MS+27. The Swiss market is the issuer’s second main source of funding, with some CHF4.4bn of existing debt, with an average tenor of above 4 years. Issuer has 2 upcoming redemptions this year, CHF50m on 31 August & CHF350m on 10 November 2026. 

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates 

• None

Transaction Details

PRICED: Muenchener Hypothekenbank eG CHF 170m 9yr Green CB; SARON MS+33

IGC European Market: Deal Flow - General

Reoffer: 9yr: SARON MS+33 / 100.236 / 0.9725%
Benchmark: 9yr: Govt.+56

Spread set at: 9yr: SARON MS+33bp - Size increased to Min. CHF 160m
IPTs: 9yr: SARON MS+33/34bp

• Issuer: Muenchener Hypothekenbank eG (Ticker: MUNHYP)
• Issuer Domicile: Germany
• Format: New Foreign Public Fixed Rate Bond
• Status: Covered Bond (Hypothekenpfandbrief)
• Type: Green Bond
• Issuer Rating: Moody's: Aa2 (stable)
• Instrument Rating (exp): Moody's: Aaa
• Sustainability Rating: MSCI ESG Rating AA, ISS-ESG C+ (Prime), Sustainalytics: Low Risk
• Issue Size: CHF 170m
• Settlement Date: 27-Aug-26
• Maturity: 27-Aug-35 (9 years)
• Coupon: 1.00% p.a.
• Issue Price: 100.236%
• Spread/Yield: SARON MS +33.0 // YTM 0.9725% // Govt.+56
• ISIN / Security Number: CH1593190973 / 159.319.097
• Lead Manager(s): Deutsche Bank, UBS
• SNB Repo-eligibility: At the discretion of the SNB, expected yes
• Documentation: Off Münchener Hypothekenbank eG's Debt Issuance Programme dated 13-May-26, as supplemented, in accordance with art. 45 para. 3 FinSA
• Governing Law: German
• Covenants: PP
• SIX Listing: 25-Aug-26
• Denomination: CHF 5,000
• Use of Proceeds: An amount equal to the net proceeds of the Green Pfandbrief will be applied, pursuant to the "Münchener Hyp Green Funding Framework", to new or existing lending through "Green loans" for private customers or certified environmental loans for commercial mortgages
• Green Funding Framework and Second Party Opinion: Münchener Hyp Green Funding Framework and Second Party Opinion are available on the issuer’s website: www.mhb.de/en/investors/reports-and-presentations
• Target Market: Target market (MiFID II product governance) as defined by the manufacturer domiciled in the EEA is eligible counterparties, professional clients and retail clients, the latter in Switzerland only (all distribution channels), subject to applicable selling restrictions
• Sales Restrictions: USA, US Persons, EEA, UK, JPN, HK, CAN, AUS

PRICED: Eurogrid €500m 12yr EuGB Sr Unsec; MS+108bp

IGC European Market: Deal Flow - General

Reoffer: 12yr: MS+108bp / 100 / 4.292%
Benchmark: 12yr: DBR 1 15-May-38 @ 78.07% / B+101.7bp / HR 110%

Final Books above €2.7bn. Peak book €4.2bn+ (pre-rec, good at guidance)

Launched: 12yr: €500m @ MS+108bp - Books €4.2bn+ (pre-rec, good at guidance)
Guidance: 12yr: MS+115a - Books €3.7bn+ (pre-rec)
IPTs: 12yr: MS+140/145bp

• Issuer: Eurogrid GmbH (Ticker: EUROGR, Country: Germany)
• Issuer LEI: 967600Q53854Z2NBCC81
• Issuer Ratings: BBB (stable outlook) by S&P and Baa2 unsolicited (stable outlook) by Moody’s
• Expected Issue Ratings: BBB by S&P
• Guarantors: 50Hertz Transmission GmbH (LEI: 529900N6V96MBOIRXV55) and 50Hertz Offshore GmbH (LEI: 8755005LVIN8ES5KAA34)
• Format: Senior, Unsecured, Reg S (Cat 2) Bearer NGN, European Green Bond
• Size: €500m
• Settlement: 18-Aug-26 (T+10)
• Maturity: 18-Aug-38
• Coupon: 4.292%, Fixed (Annual, Act/Act ICMA)
• Re-Offer: 100.00% / MS+108bps / 4.292% / B+101.7bp
• Reference: DBR 1% 15-May-38, 3.275%, 78.07% (HR 110%)
• Documentation: Eurogrid’s Debt Issuance Programme dated 13-May-26, as supplemented on 31-Jul-26 (the “Programme”) / Lux. Listing / German Law / Tax Call / 3m Par Call / Clean-up Call (80%) / MWC (B+15bp)
• Denomination: €100,000 x 100,000
• Selling Restrictions: U.S. (Reg. S Cat. 2, TEFRA D), EEA, UK, Japan, Singapore and Canada as per the Programme.
• UoP: 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. An amount equivalent to the gross proceeds of the issuance of Notes will be applied to finance, refinance and/or invest in eligible activities in line with Eurogrid’s European Green Bond Factsheet (included in Eurogrid's Green Financing Framework) dated Sep-25. The European Green Bond Factsheet along with the pre-issuance review by Sustainable Fitch are available on the Issuer’s website at: https://www.eurogrid.com/en-us/Investor-Relations/Green-Financing
• Target Market: Manufacturer target market (MiFID II product governance / UK MiFIR product governance rules) is eligible counterparties and professional clients only (all distribution channels). For the avoidance of doubt, there will be no sales to retail investors under any jurisdiction in primary market. No EU PRIIPs key information document (KID) or UK PRIIPs CCI product summary has been prepared as the notes will not be made available to retail investors in the EEA or the UK.
• Joint Bookrunners: ABN AMRO, BNP Paribas (B&D), Mizuho, Rabobank
• Clearing: Euroclear Bank SA/NV / Clearstream Banking SA
• ISIN / Common Code: XS3464390767 / 346439076
• Advertisement: This communication is not an advertisement for the purposes of Regulation (EU) 2017/1129 and underlying legislation. It is not a prospectus. The Base Prospectus and any supplements and the final terms, when published, will be available at https://www.luxse.com/programme/Programme-Eurogrid/14143
• Timing: TOE 15.24 UKT / 16.24 CET FTT: 15.45 / 16.45 CET

12yr (Aug 2038) @ MS+140-145
Implied Spread for fresh 12yr @ MS+109
Priced at MS+108
NIC of -1

• Details correct at time of posting