Commentary & Deal Flow

• While some market participants had expected a thin day, today turned out to be the most active single session this month, with € IG public markets hosting 2 issuers (2 x FIG) for a total of €1.65bn via 2 tranches (1 x Tier 2 & 1 s Snr-Pref).
• Elsewhere the Swiss Franc market was again active with 2 issuers (1 x FIG & 1 x SSA) pricing a collective Chf310m via 2 tranches of senior unsecured debt.
• Both the £ & $ Reg S IG primary markets were quiet. 
• The public Swiss Franc primary bond market has seen notable activity in the past few weeks, compared to both € & £ bond markets - with both domestic & international issuers accessing the market. A closer look at this activity points to a heavy redemption calendar into year end & also in January 2027. The bond repayments mean that a wall of cash will need reinvesting. 2023 saw a sharp increase in annual issuance volumes to a little over Chf1.2tn. For context, the average annual issuance volumes between 2016 & 2022 stood at around Chf160bn per calendar year. After a drop off in volumes in 2024 (to c.Chf560bn+), the year 2025 popped back up to a level close to the 2023 record. So far in 2026, the year-to-date issuance volume across the Swiss market has already topped Chf600bn+. Factoring in redemption flows over the next 5 months & potential prefunding for January 2027, could a new record be set in 2026?
• Today’s “Talking Point” (below) tracks the largest deals in € IG across all 3 segments in 2026 YTD.
• Brent is once again off session highs at c.$88.66 (having again peaked at $90).
• European equity markets mostly fell from green to red this afternoon, with the CAC 40 down 0.39%,  & the FTSE down 0.1%. Bucking trend is the Dax which is currently up slightly by 0.13%.
• 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: €1.65bn
    • Avg. tranche size €825m
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing -28 (unsecured)
    • Avg. cover  2.47 X
  • SSA
    • Total IG: €0
    • Avg. tranche size €0
    • Avg. IPT to Pricing NA
    • Avg. cover NA
• Pipeline: With recent trades coming straight to market, today was the first session in 3 weeks (since the 22nd of July) where we actually have an overnight mandate.
  • 1 x Chf Corp
  • 1 x € SSA

Talking Point

• The table below sets out the 10 largest € IG deals so far in 2026 across Corp, FIG & SSA, with GBP & CHF data to follow over the next two days. Taken together the 3 sectors tell a consistent story about where size & appetite have been concentrated this year.
• In Corp, the top of the table is dominated by US tech. Amazon ranks first with a €14.5bn 8-tranche transaction on the 11th of March - the largest Corp deal of the year by a significant margin - followed by Alphabet with a €9bn 6-tranche print on the 5th of May. AT&T ranks third with €4.1bn across 5 tranches on July 27th, notable as a late-summer print that attracted strong demand in what is typically the quietest window of the year. The remainder of the top 10 spans a broad mix of sectors & geographies, from IBM & Danaher to TenneT, Baker Hughes & SAP, with deal sizes ranging from €3bn to €3.5bn.
• In FIG, Goldman Sachs appears twice in the top 3, with a €7bn 4-tranche print in February & a further €5bn 3-tranche transaction in July, reflecting the bank's active use of the € market across the year. Morgan Stanley ranks second with a €5bn in January. The remainder of the top 10 is a mix of US, European & Japanese names, with NTT Finance ranking fourth with a €3.85bn 6-tranche deal in June & Unedic appearing twice, in both March & April, reflecting the French unemployment agency's continued status as one of the most active & well-received issuers in the € FIG space.
• In SSA, the Republic of Italy dominates, occupying 4 of the top 5 positions with transactions totalling €69.5bn, ranging from €14bn to €20bn per deal. Spain ranks fourth & sixth with €15bn in January & €13bn in May respectively, while the European Union appears three times in the top 10 with €11bn transactions in January, February & July. KfW rounds out the top 10 with a €10bn print on the 7th of January. 

Euro IG (today)

• KBC Group NV (exp. Issue ratings of Baa1 / BBB+ / BBB+ by Moody’s, S&P & Fitch) announced a €650m (wng) Tier 2 11NC6 offering. IPTs on the trade were in the area of MS+140. Books were first called at over €2bn (inc. €50m JLMs). Final terms were set as €650m at MS+112 respectively, supported by book at guidance over €2.45bn (inc. €50m JLM). The final book was above €1.75bn offering investors a NIC of 2bps. 
  • Today’s trade is the 3rd unsecured offering in €’s YTD, having priced a €1bn 7yr on January the 8th at MS+85; & a €750m 8yr on May 20th at MS+88. These 2 trades were senior unsecured prints rated A3, A- A. Today’s Tier 2 is the first Tier 2 since its Green Tier 2 €500m 11NC6 offering this time last year on August the 18th. Prior to that the next subordinated offering by KBC was its PerpNC5.5 AT1 in May 2025. 
• Swedbank AB (exp. Issue ratings of Aa2 / AA- / AA+ by Moody’s, S&P & Fitch) announced a benchmark Green € senior preferred offering with IPTs in the area of MS+75. Books were first heard at over €2bn.Final terms came in at around midday, with size & spread set at €1bn & MS+47 respectively, with books above €3.1bn (pre-rec). Final book was above €2.25bn. 
  • This is the first public unsecured € print by Swedbank so far this year. Its last unsecured visit took the form of a senior non-preferred 7yr €750m print on October the 6th of last year. Swedbanks last senior-preferred print (like today’s) was on April 30th 2025 when it priced a €750m, 4.75yr at MS+78.

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)

• NatWest Markets Plc (exp. Issue ratings of A1 / A / AA by Moody’s, S&P & Fitch) announced an initial minimum of Chf150m for a 5yr senior bullet. IPTs were in the range of SARON MS+72 to +75. Size pushed to Chf175m when spread set at SARON MS+75. Size bumped further to Chf200m, & was sized at Chf210m at pricing. 
  • Today’s Swiss Franc print is NatWest’s first such deal of the year, having last tapped the market for a Chf220m 5yr senior-preferred offering in May of last year, pricing at SARON MS+90. The borrower's last senior unsecured trade was almost exactly 2 years ago on the 13th of August 2024 when it priced a Chf180m 5yr at SARON MS+78.

• Land Sachsen-Anhalt (exp. Issue ratings of Aa1 / AAA / AAA by Moody’s, Fitch & Scope) brought an initial minimum of Chf100m for a 15yr senior unsecured offering. IPTs were in the range of SARON MS+28 to +30. The trade stayed at Chf100m when spread was set at MS+30 & it also priced on those terms.
  • This is the second time this year that the State of Saxony-Anhalt has come to the Swiss market having last printed a Chf160m 8yr back on the 28th of April. On that occasion they priced at SARON MS+21.

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates 

Euro (€)

• 12th August: Investitionsbank Berlin (explicitly guaranteed by the Federal State of Berlin, rated Aa1 / AAA by Moody’s & Fitch) mandated BayernLB, Credit Agricole CIB, Deutsche Bank, DZ BANK, & Landesbank Baden-Wuerttemberg as JLM’s for its upcoming 5 year €500m (wng) Social Bond benchmark due 20th August 2031. IBB is 0% risk weighted, LCR Level 1 & an ECB classified agency, Haircut Category II. The transaction is expected to be launched in the near future, subject to market conditions.
  • This trade would be the 3rd time IBB has come to the public € markets in 2026, having last printed a €500m 8yr at MS+22 on the 3rd of June; & prior to that, a €1bn 5yr at MS+16 on March the 17th.

Swiss Franc (Chf)

• 12th August: National Grid plc (exp. Issue ratings of Baa2 / BBB / BBB+ by Moody’s, S&P & Fitch) mandated BNP Paribas, UBS & Mizuho as JLM’s to arrange a Group Investor call on Wednesday, August 12th at 2:00pm CEST. A potential inaugural CHF-denominated Green senior unsecured bond offering (in one or more tranches) may follow in the near future, subject to market conditions. National Grid is one of the world's largest publicly listed utilities companies focused on transmission & distribution of electricity for homes & businesses in the UK, & the transmission & distribution of electricity & gas for homes & businesses in the Northeast US.
  • This would be an inaugural Swiss Franc trade for National Grid. Its last foray into the European public markets was a €650m 8yr print on the 27th of January, pricing a senior unsecured offering at MS+80.

Transaction Details:

PRICED: Land Sachsen-Anhalt CHF 100m 15yr Sr Unsec; SARON MS+30bp

IGC European Market: Deal Flow - SSA

Reoffer: 15yr: SARON MS+30bp / 100 / 1.1275%

Spread set at: 15yr: SARON MS+30bp
IPTs: 15yr: SARON MS+28/30bp

• Issuer: Land Sachsen-Anhalt (Ticker: SACHAN)
• Issuer Domicile: Germany
• Domestic / Foreign: Foreign
• Format: Public Fixed-Rate Notes
• Ranking: Senior unsecured
• Issuer Rating: Aa1/AAA/AAA (Moody's/Fitch/Scope)
• Expected Issue Ratings: Aa1/AAA/AAA (Moody's/Fitch/Scope)
• Size: CHF 100m
• Coupon: 1.1275% p.a. (30/360, following unadj.)
• Settlement Date: 28-Aug-26
• Maturity Date: 28-Aug-41 (15 years)
• Spread/Yield: SARON MS +30.0 / YTM 1.1275% / Govt + 54.3
• Issue Price: 100
• ISIN / Valor: CH1597777692 / 159.777.769
• Lead Managers: Deutsche Bank, BNP Paribas
• SNB Repo-eligibility: At the discretion of the SNB, expected yes (HQLA Level 1)
• Documentation: Alleviated Base Prospectus dated 6-Mar-26, relating to the issuer debt issuance programme
• FinSA Prospectus: Delayed prospectus approval in accordance with Article 51(2) FinSA
• Governing Law: German law
• Covenants: PP
• Listing: 26-Aug-26
• Denomination: CHF 5,000 and multiples thereof
• Selling Restrictions: In particular USA, U.S. persons, the European Economic Area, the United Kingdom, Germany, Luxembourg and Japan, in each case as further described in the Alleviated Base Prospectus.
• Target Market: Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients (all channels for distribution channels). Public Offering in Switzerland only.

PRICED: NatWest Markets Plc CHF 210m 5yr Sr Unsec; SARON MS+75

IGC European Market: Deal Flow - General

Reoffer: 5yr: SARON MS+75 / 100 / 1.135% (Govt.+89bp)

Launched: 5yr: CHF 210m @ SARON MS+75bp
Spread set at: 5yr: SARON MS+75bp
IPTs: 5yr: SARON MS+72/75bp

• Issuer: NatWest Markets Plc
• Ticker: NWG
• Issuer Domicile: United Kingdom
• Format: Public Fixed Rate Notes
• Ranking: Senior, unsubordinated, unsecured, ranking pari passu
• Issuer Ratings: A1/A/AA (Moody's/S&P/Fitch)
• Expected Instrument Rating: A1/A/AA (Moody's/S&P/Fitch)
• Size: CHF 210m
• Settlement Date: 26-Aug-26
• Maturity: 26-Aug-31 (5 years)
• Coupon: 1.135% p.a.
• Price: 100
• Yield: 1.135%
• Spread: SARON MS+75
• ISIN: CH1593191062
• Security Number: 159319106
• Lead Managers: Commerzbank, NatWest, UBS
• SNB Repo-eligibility: At the discretion of the SNB, expected no
• Documentation: Based on the Issuer’s EMTN programme dated 05-Dec-25, as supplemented on 13-Feb-26, 01-May-26, 14-May-26, 31-Jul-26, and 03-Aug-26
• FinSA Prospectus: Delayed Swiss prospectus approval in accordance with article 51(2) FinSA
• Governing Law: English
• Covenants: PP, XD
• SIX Listing: 24-Aug-26
• Denominations: CHF 100,000 and multiples thereof
• Sales Restrictions: Reg S, Cat 2, TEFRA D in accordance with Swiss practice (foreign jurisdiction) and as otherwise set forth in the Base Prospectus
• Target Market: Manufacturer target market as defined by the EU and UK manufacturer: Eligible counterparties and professional clients only (all distribution channels). Subject to applicable selling restrictions. Prohibition of Sales to Retail Investors restrictions apply.

PRICED: KBC Group €650m 11NC6 T2; MS+112bp

IGC European Market: Deal Flow - General

Reoffer: MS+112bp / 99.849 / 4.154%
Benchmark: DBR 1.7 15-Aug-32 @ 93.495 / B+125.8 / HR 100%

Final Books: >€1.75bn. Peak book >€2.45bn (inc €50m JLM).

Launched: €650m @ MS+112bp - Books >2.45bn (inc 50m JLM)
Book Update: Books > 2bn (inc 50m JLM)
IPTs: MS+140a

• Issuer: KBC Group NV
• Ticker: KBCBB Corp
• LEI Issuer: 213800X3Q9LSAKRUWY91
• Issuer Ratings: A3/A-/A (Moody's/S&P/Fitch)
• Exp. Issue Ratings: Baa1/BBB+/BBB+ (Moody's/S&P/Fitch)
• Status: Subordinated Tier 2 Notes
• Size: €650m
• Settlement Date: 20-Aug-26 (T+6)
• Maturity Date: 20-Aug-37
• Optional Redemption Date: 20-Aug-32
• First Reset Date: 20-Aug-32
• Coupon: 4.125% fixed, annual, for the period from and including the Issue Date to but excluding the First Reset Date. If the Notes are not redeemed or purchased and cancelled on the Optional Redemption Date, the interest payable on the Notes from and including the First Reset Date to but excluding the Maturity Date shall be reset to a fixed rate equal to the 5-year mid-swap rate prevailing at the Reset Determination Date plus the Margin. Subject to benchmark replacement provisions.
• First Coupon Date: 20-Aug-27
• Business Day Convention/Day Count Fraction: ACT/ACT(ICMA), unadjusted / following
• Reoffer: 99.849 / MS+112bps / 4.154%
• Benchmark: 125.8bps vs DBR 1.7 15-Aug-32 @ 93.495 / HR 100%
• Waiver of Set-off: Applicable. See Condition 2(b)(iii)
• Issuer Call Option: Applicable. See Condition 4(d). The Issuer may at its option (subject to Conditions to Redemptions) redeem all of the Notes on the Optional Redemption Date. Any such redemption of the Notes shall be at their Optional Redemption Amount, together with interest accrued to the date fixed for redemption.
• Redemptions upon Tax Event or Capital Disqualification Event subject to Conditions to Redemptions: Applicable. See Condition 4(b) and (c). Callable upon Tax Event or Capital Disqualification Event at the option of the Issuer at par in whole, but not in part, subject to Conditions to Redemptions
• Substitution & Variation: Applicable. See Condition 6. Following a Capital Disqualification Event the Issuer may substitute or vary the terms of all (but not some only) of the Subordinated Tier 2 Notes, without any requirement for the consent or approval of the Noteholders, to ensure that the Notes become or remain Qualifying Securities
• Acknowledgement of Bail-in Power: See Condition 18(c). Acknowledgement of Bail-in Power, the possibility to substitute or vary the terms of the Notes, as deemed necessary by the Resolution Authority
• Denominations: €100k + €100k
• Target Market: MiFID II and UK MiFIR professionals/ECP’s only (all distribution channels). No EEA key information document (KID) or product summary required by DISC has been prepared as not available to retail in EEA and UK.
• Use of Proceeds: General Corporate Purposes
• Fees: The JBRs will be paid a distribution and selling commission by the Issuer in respect of the placement of the securities. To be paid separately
• Listing: Euronext Brussels
• ISIN: BE0390370428
• Documentation: Issuer’s EMTN programme described in the Base Prospectus dated 03-Jun-26
• Governing Law: The Notes and any non-contractual obligations arising out of or in connection with them are governed by, and shall be construed in accordance with, Belgian law
• Bookrunners: Commerzbank, Goldman Sachs International, HSBC, ING, KBC and Morgan Stanley (B&D)
• Timing: PRICED – TOE 13:02 LDN / 14:02 CET, FTT 13:25 LDN / 14:25 CET

Tier 2
11NC6 (Aug 2037) @ MS+140a
Implied Spread for fresh 11yr @ MS+110
Priced at MS+112
NIC of +2

PRICED: Swedbank €1bn 5yr SP; MS+47bp

IGC European Market: Deal Flow - General

Reoffer: 5yr: MS+47bp / 99.544 / 3.476%
Benchmark: 5yr: OBL #193 2.5% 16-Apr-31 @ 98.450 / B+62.1 / HR 105%

Final Books over €2.25bn. Peak book above €3.1bn (pre-rec)

Launched: 5yr: €1bn @ MS+47bp - Books above €3.1bn (pre-rec)
Book Update: Books >€2bn
IPTs: 5yr: MS+75bp area

• Issuer: Swedbank AB (publ) (Ticker: SWEDA)
• LEI: M312WZV08Y7LYUC71685
• Issuer Ratings: Aa2 / AA- / AA+ (Moody's / S&P / Fitch)
• Exp. Issue Ratings: Aa2 / AA- / AA+ (Moody's / S&P / Fitch)
• Form of the Notes: Reg S Bearer Notes evidenced by a Temporary Global Note exchangeable for a Permanent Global Note. TEFRA D Rules apply, no communications with or into the US or Canada (excluding Ontario)
• Status: Senior Preferred Notes, Unsubordinated and Unsecured
• Issue Size: €1bn
• Re-offer: MS+47bp / 99.544 / 3.476%
• Ref Benchmark: +62.1ps vs OBL #193 2.5% 16-Apr-31 @ 98.450 - HR 105%
• Issue Date: 12-Aug-26
• Settlement Date: 19-Aug-26 (T+5)
• Maturity Date: 19-Aug-31
• Coupon: 3.375%, Fixed, Annual, Act/Act ICMA
• Interest Payment Dates: Payable annually in arrear on 19 August in each year, from (and including) 19 August 2027 to (and including) the Maturity Date
• Waiver of Set-off: No Holder of Notes who in the event of the liquidation or bankruptcy of the Issuer shall be indebted to the Issuer shall be entitled to exercise any right of set-off, netting or counterclaim against moneys owed by the Issuer in respect of the Notes held by such Holder
• Early Redemption: Upon the occurrence of a Withholding Tax Event, a Tax Event or a MREL Disqualification Event (if all or part of the Notes are excluded from “eligible liabilities” available to meet any MREL Requirement), the Issuer may redeem all (but not some only) of the Notes, at their principal amount, together, if appropriate, with accrued interest
• Substitution & Variation: If at any time a MREL Disqualification Event, a Withholding Tax Event or a Tax Event has occurred and is continuing, or in order to ensure the effectiveness and enforceability of the Swedish Statutory Loss Absorption Powers, the Issuer may, subject to receiving prior consent of the Relevant Regulator (if required), substitute all (but not some only) of the Notes for, or vary the terms of the Notes so that, or provided that they remain or become, Senior Preferred Qualifying Securities
• Events of Default: Payment of principal and interest on the Notes will be subject to acceleration only in certain limited circumstances, in accordance with Condition 6 (Events of Default)
• Denominations: €100k + €1k
• Listing: Euronext Dublin (regulated)
• Governing Law: English law, save for Condition 3 (Status), which shall be governed by and construed in accordance with Swedish law, as per the Base Prospectus
• Business Days: T2
• Clearing: Euroclear / Clearstream
• Documentation: Issued under the Swedbank AB (publ) GMTN Programme Base Prospectus dated 13-May-26 (together, the ‘Base Prospectus’)
• Swedish Statutory Loss Absorption Powers: Each Noteholder acknowledges and accepts to be bound by the exercise of Swedish Statutory Loss Absorption Powers by the Relevant Resolution Authority
• Fees: The Joint Bookrunners will be paid a fee by the Issuer in connection with the transaction
• Target Market: Manufacturer target market (EU MiFID II / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA PRIIPs key information document (KID) or disclosure document required by the FCA Product Disclosure Sourcebook (DISC) has been prepared as the Notes are not deemed to be in scope / not available to retail in EEA or in the UK.
• Selling Restrictions: Per the Base Prospectus
• Use of proceeds: An amount equal to the net proceeds of the Notes will be applied to a sub-portfolio of loans with a special purpose to finance or refinance, in whole or in part, Eligible Green Assets that fulfil the Eligibility Criteria set out in the Issuer’s Sustainable Funding Framework.
• Full details of the Eligibility Criteria can be found in the Sustainable Funding Framework, which has been reviewed by ISS-Corporate in a Second Party Opinion.
• Sustainable Funding Framework: https://internetbank.swedbank.se/ConditionsEarchive/download?bankid=1111&id=WEBDOC-PRODE263407506
• ISS-Corporate Second Party Opinion: https://internetbank.swedbank.se/ConditionsEarchive/download?bankid=1111&id=WEBDOC-PRODE263325823
• Neither the Sustainable Funding Framework nor the ISS-Corporate Second Party Opinion forms part of the offering materials and any offer is made solely on the basis of the Base Prospectus and the Final Terms
• Base Prospectus: The Base Prospectus is available and the Final Terms, when published, will be available on the website of Euronext Dublin:
• https://live.euronext.com/en/product/bonds-detail/25222/documents
• ISIN / Common Code: XS3472754095 / 347275409
• Joint Bookrunners: Barclays, BNP Paribas, Crédit Agricole CIB, Swedbank and UBS (B&D)
• Timing: PRICED, ToE 13:12 UKT / FTT 13:25 UKT

Senior Preferred
5yr (Aug 2031) @ MS+75a
Implied Spread for fresh 5yr @ MS+47
Priced at MS+47
NIC of +0

Details correct at time of posting