• Today saw yesterday’s mandate launched & priced, being the sole IG trade of the day - 1 £ IG (1 x corp) for Orbital Capital plc. The final terms for the transaction were £250m at G+92, 18bps through IPTs. The final book closed at £950m, having peaked at £1.25bn (pre-rec). The issue was seen quoted in the grey market (prior to pricing) at cash reoffer +25 bid only. 
• There was no issuance today in the remainder of the public primary bond markets in € IG, Chf & $ Reg S. 
• News headlines today remained muted & did not provide any real direction for global financial markets. The US-Iran diplomatic efforts were reported to be progressing in the right direction, for an acceptable resolution to hostilities & a framework to re-establish free flowing movement on the Straits of Hormuz. 
• Equity markets in Europe enjoyed a steady session today. Small gains were seen across the various exchanges in Europe & the UK. IBEX outperformed its peer group with gains of 1.20%. 
• Brent crude oil stayed in a narrow range all day in Europe, trading around the $80 level. VIX was broadly unchanged in the vacuum of non-material news flow, drifting a little lower around the $16 big figure. 
• 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: €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

• Adding an important dimension to yesterday's EUR Corp spread picture, this comparison sets 2025 average spreads against 2026 across the same rating & tenor matrix to reveal how pricing conditions have shifted year-on-year. The headline finding is one of broad-based tightening; across virtually every rating group & tenor bucket where a like-for-like comparison is possible, 2026 has printed inside 2025 levels, a reflection of the constructive credit environment that has characterised the market this year. The tightening is most visible in the A & BBB space; A rated paper in the 5 to 7-year bucket has moved from 78bps in 2025 to 67bps in 2026, an 11bps improvement, while the same tenor in BBB+ has tightened from 92bps to 70bps, a notable 22bps move that speaks to the strong demand backdrop that investment grade credit has enjoyed in 2026. BBB- tells a similar story, with the 3 to 5-year bucket moving from 116bps to 99bps & the 5 to 7-year bucket compressing from 158bps to 126bps, a 32bps tightening that is the largest absolute move in the entire table. The higher quality end of the spectrum has also tightened, albeit more modestly; AA- in the 7 to 10-year bucket has moved from 73bps to 66bps & the 5 to 7-year point from 60bps to 49bps. The one area where spreads have not followed the broader tightening trend is the 10 to 15-year bucket for AA rated paper, which has actually widened from 82bps in 2025 to 93bps in 2026, an 11bps move that likely reflects the specific composition of deals that have priced in that bucket rather than any structural deterioration in long-end demand. 

Euro IG (today)

• No Supply

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• Announced yesterday, Orbit Capital plc (Issuer rating A3 by Moody’s) came to the market with a £ benchmark 15-year, due 13 August 2041 with IPTs in the area of G+110, via Barclays, Lloyds & NatWest. By midday, size was set at £250m, and guidance was indicated in the area of G+95 (+/- 3 WPIR), backed by a book above £1.25bn (pre-rec). Final terms were set at £250m at G+92, with the book above £1.1bn (pre-rec). The final book was £950m. 
  • Issuer has 3 existing £ transactions in the market, totalling £1bn. Its last foray to the public primary bond market was in late 2020 when it sold £300m 18yr at G+135. The outstanding issues all trade at a deep discount, arguably distorting their true value.

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: Orbit Capital £250m 15yr Snr Sec Sust; UKT+92bp

IGC European Market: Deal Flow - General

Reoffer: 15yr: UKT+92bp / 98.852 / 6.244%
Benchmark: 15yr: UKT 5.25% 31-Jan-41 / 99.258 Mid / HR 96%

Final Books: £950m+. Peak book above £1.25bn (pre-rec).

Launched: 15yr: £250m @ UKT+92bp - Books above £1.1bn (pre-rec)
Guidance: 15yr: UKT+95a (+/-3bps WPIR) - Books above £1.25bn (pre-rec)
IPTs: 15yr: G+110a

• Issuer: Orbit Capital plc
• Ticker: ORBCAP
• Country: GB
• Issuer LEI: 213800QIGGLJLT7WXP16
• Borrowers: Orbit Group Limited / Orbit Housing Association Limited
• Borrowers LEI: 213800EQX3LKB474E667 / 21380032X55Y917K9J52
• Issuer Ratings: A3 (stable) (Moody’s)
• Expected Issue Ratings: A3 (Moody’s)
• Format: Senior, Fully Secured, Reg S, Bearer (NGN), Sustainability
• Size: £250m
• Settlement: 13-Aug-26 (T+5)
• Tenor: 15 Years
• Legal Maturity: 13-Aug-41
• Reoffer: UKT+92bps / 98.852 / 6.244% s.a.
• Benchmark Gilt: UKT 5.250% due 2041 (99.258 Mid | 99.228 Bid) | HR 96%
• Coupon: 6.125% Fixed, Semi-Annual, ACT/ACT (ICMA)
• Documentation: EMTN Programme Admission Particulars, as supplemented on 29-Jul-26 and 04-Aug-26, International Securities Market, English Law The £1bn Note Programme dated 30-Mar-26 is available at Programme Admission Particulars (Orbit Establishment)(112644341.1). The Pricing Supplement, when published, will be available on the website of the London Stock Exchange www.londonstockexchange.com
• Denominations: £100k + £1k
• Issuer Call: 3 Month Par Call, Make Whole Call (G+15bps)
• Use of Proceeds: Sustainability Bond, in accordance with the Issuer's Sustainable Finance Framework. More details can be found at https://orbitgroup.org.uk/media/xs0hs4ur/sustainable-finance-framework-2026_27-feb.pdf The Framework does not form part of the offering materials and any offer is made solely on the basis of the Programme Admission Particulars dated 30-Mar-26 (as supplemented) and the Pricing Supplement (once available).
• Target Market: Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EU PRIIPs key information document (KID) or disclosure document required by the FCA Product Disclosure Sourcebook (DISC) has been prepared as the Notes are not available to retail in the EEA or UK
• ISIN: XS3463463888
• Asset Cover: 105% EUV-SH / 115% MV-ST as further described in the Programme Admission Particulars
• Marketing: https://dealroadshow.finsight.com with entry code Orbit26
• Clearing: Euroclear and Clearstream
• Active Bookrunners: Barclays, Lloyds, NatWest (B&D)
• Selling Restrictions: US: Reg S, Category 2. TEFRA D applies. No sales to retail in the UK or EEA.
• Timing: TOE: 14:39 UKT / FTT:15:00 UKT

15yr (Aug 2041) @ G+110a

Implied Spread for fresh 15yr @ G+85

Priced at G+92
NIC of +7

Details correct at time of posting