Commentary & Deal Flow

• There was a live pipeline for the first time in 3 weeks heading into today’s session which resulted in the € IG public market hosting 1 issuer (1 x SSA) for a total of €500m via 1 tranche (Social).
• Elsewhere the Swiss Franc market remained active once again with 2 issuers (1 x Corp & 1 x FIG) pricing a collective Chf585m via 3 tranches of senior unsecured debt. The FIG trade was a covered, while the other was a senior unsecured corporate dual-tranche from Nat Grid, which proved to be the 7th largest corporate Swiss Franc trade of the year.
• Sterling IG was also active with 1 issuer (1 x FIG) printing £650m of Tier 2 debt via 1 tranche.
• The US$ Reg S IG primary market was quiet. 
• Following on from yesterday’s € analysis, today’s “Talking Point” (below) tracks the largest deals in £ IG across all 3 segments in 2026 YTD.
• Brent crude fell to c.$85.94 (from $88.66 this morning).
• European equity bourses have been mixed today, with both the FTSE & CAC 40 now in negative territory (-0.4% & -0.08% respectively), with only the DAX currently in the green, up 0.2%.
• 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: €500m
    • Avg. tranche size €500m
    • Avg. IPT to Pricing -2.0
    • Avg. cover 3.8 X
• Pipeline: There are no €, £, Chf or Reg S $ transactions in the IG pipeline.

Talking Point

• The table below sets out the 10 largest £ IG deals YTD across Corp, FIG & SSA, with CHF data to follow tomorrow. The £ market has its own distinct character relative to the € equivalent & the composition of each sector reflects that.
• In Corp, Alphabet ranks first with a £5.5bn 5-tranche transaction on the 10th of February, comfortably the largest Corp deal in the £ market this year. Stellantis ranks second with £865m across 3 tranches on the 10th of March, after which deal sizes step down considerably, with the remaining 8 transactions ranging from £400m to £750m. The mix of names is notably diverse, spanning US telcos Verizon & AT&T; infrastructure & securitisation vehicles Westfield Stratford City, Telereal & Heathrow Funding; European utilities in Engie & Vonovia; & regulated UK infrastructure in NIE Finance, reflecting the breadth of issuer types that the £ market continues to attract.
• In FIG, 9 of the top 10 transactions are covered bonds, all carrying AAA ratings from at least one agency, with Morgan Stanley the sole senior unsecured name in the table with £1bn across 2 tranches on the 8th of June. The covered bond cohort is geographically diverse, spanning UK domestic lenders in Nationwide & Lloyds; Canadian banks in TD, Scotia, RBC & BMO, the latter appearing twice; & ANZ from Australia. Nationwide leads the table with £1.75bn across 2 tranches on the 7th of January, the largest FIG print of the year in the £ market.
• In SSA, the UK naturally dominates in a way that has no direct parallel in the € table, occupying the top 5 positions with syndicated gilt transactions totalling £42.25bn, ranging from £6.25bn to £15bn per deal. The £15bn single-tranche print on the 14th of April is the largest individual transaction across all three sectors in the £ IG table this year. The remaining 5 positions are occupied by supranational & agency names, with KfW, ADB, EIB, the AfDB & CADES each printing between £1bn & £2bn in the opening days of January & into April. 

Euro IG (today)

• Investitionsbank Berlin (rated Aa1 / AAA by Moody’s & Fitch), brought its anticipated €500m (wng) 5yr Social Bond due 20th August 2031. Guidance on the notes was in the area of MS+14. Books were first cited as being in excess of €1.4bn (inc. €200m JLMs). Final terms were set at €500m at MS+12, with a book in excess of €1.9bn (inc €200m JLM). The final book stayed in excess of 1.9bn(inc. €225m JLM).  
  • This trade is the 3rd time IBB has come to the public € markets in 2026, having last placed a €500m 8yr at MS+22 on the 3rd of June; & prior to that, a €1bn 5yr at MS+16 on March the 17th. 

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• Commonwealth Bank of Australia CBA (exp. Issue ratings of A2 / A- / A by Moody’s, S&P & Fitch) announced a benchmark £ Tier 2 offering with IPTs in the area of mid G+145. The traditional 10NC5 structure has a maturity at 21 August 2036, with an optional redemption on 21 August 2031. The book was first quoted as being above £1.5bn. Spread was set at G+120, with a book above £2.2bn (inc.£20m JLM), pre-rec. Final terms came in with a size of £650m, with the book decreasing to above £1.7bn (inc.£25m JLM) pre-rec. 
  • This was the first £ Tier 2 in nearly a month, when Paragon Banking Group last printed its £200m 10yr in mid-July.
  • CBA appears frequently in the £ market, as its lending book in the UK has grown over the last 14 years. Trades do tend to be on the small & short side, though in both public & private markets YTD CBA has raised £630m (all 1yr or shorter). In 2025 CBA sold some £1.875bn of debt in the UK market, but again, all short maturities.

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

• National Grid Plc  (Baa2 / BBB / BBB+ by Moody’s, S&P & Fitch), mandated yesterday, brought a Chf dual-tranche, Green issue featuring a 5 & 10yr, with guidance in the area of SARON MS+75 to 85 for the 5yr & +95 to 105 for the 10yr. Guidance was revised to SARON MS+78 to 80 & SARON MS+98 to 100 respectively, with a minimum size of Chf150m for each tranche. Both tranches set spreads at the mid-point of guidance at MS+80 & MS+100 respectively, with new minimum sizes of Chf200m. The priced deal size was set at a total of Chf465m, 5yr at Chf235m & 10yr at Chf230m.  
  • This was the inaugural Swiss Franc trade for National Grid & ended up being the 7th largest corporate Chf trade YTD. Nat Grid’s 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. The Swiss market is generally receptive to new IG-rated credits & this transaction is great diversification for the Issuer.

• Hypo Vorarlberg Bank AG (exp. Issue rating of Aaa by Moody’s) announced an initial minimum of Chf100m for its 7yr covered bond. Guidance was in the range of SARON MS+38 to +40. Spread was set at SARON MS+39, with a new minimum size of Chf115m. The trade upsized a fraction more to price Chf120m at SARON MS+39; the mid point-of guidance.
  • Today’s Swiss Franc print is the mortgage lender’s first Chf deal of the year, having last tapped the market for a small bank capital trade of Chf50m PNC5 in October of last year, pricing at SARON MS+424.6. The borrower is a familiar name in the Swiss market & has tapped that market every year since 2018.

Week-to-date volumes:

US$ Reg S (today)

• No Supply

Pending Deals & Mandates 

• None

Transaction Details:

PRICED: Hypo Vorarlberg Bank AG CHF 120m 7yr CB; SARON MS+39

IGC European Market: Deal Flow - General

Reoffer: 7yr: SARON MS+39 / 100 / 0.875%
Benchmark: 7yr: Govt + 56.7bp

Spread set at: 7yr: SARON MS+39bp - Books subject, closing at 10:40 AM CET
Guidance: 7yr: SARON MS+38/40a

• Issuer: Hypo Vorarlberg Bank AG
• Ticker: VORHYP
• Issuer Domicile: Austria
• Domestic / Foreign: Foreign
• Format: Public Fixed-Rate Notes
• Ranking: Mortgage Pfandbriefe, ranking pari passu
• Issuer Rating: A3 (negative) (Moody's)
• Instrument Rating (exp): Aaa (Moody's)
• Issue Size: CHF 120m
• Coupon: 0.875% p.a.
• Day Count: 30/360
• Business Day Convention: Following, unadjusted
• Settlement Date: 31-Aug-26
• Maturity: 31-Aug-33 (Soft Bullet)
• Spread/Yield: SARON MS +39bp // YTM 0.875% // Govt + 56.7bp
• Issue Price: 100
• ISIN / Valor: CH1598618937 / 159.861.893
• Lead Manager(s): Commerzbank, Deutsche Bank
• SNB Repo-eligibility: At the discretion of the SNB, expected yes (HQLA Level 2a)
• Documentation: Off the issuer’s €8,000,000,000 Debt Issuance Programme, dated 15-Jul-26, as supplemented
• FinSA Prospectus: Base Prospectus is deposited with and recognized by the Swiss Prospectus Office pursuant to Art. 54(2) FinSA. Final Terms available in accordance with Art. 45 (3) FinSA.
• Governing Law: Austrian law
• Covenants: PP
• SIX Listing: 28-Aug-26
• Denomination: CHF 5,000 and multiples thereof
• Selling Restrictions: In particular United States and US persons, EEA and UK, as per the Debt Issuance Programme
• 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: National Grid CHF 465m 5yr & 10yr Green Sr Unsec; SARON MS+80 & SARON MS+100

IGC European Market: Deal Flow - General

Reoffer: 5yr: SARON MS+80 / 100 / 1.17% 10yr: SARON MS+100 / 100 / 1.628%
Benchmark: 5yr: Govt.+93 10yr: Govt.+126

Spread set at: 5yr: SARON MS+80bp 10yr: SARON MS+100bp
RVSD Guidance: 5yr: SARON MS+78/80bp 10yr: SARON MS+98/100bp
Guidance: 5yr: SARON MS+75/85bp 10yr: SARON MS+95/105bp

• Issuer: National Grid Plc
• Ticker: NGGLN
• Issuer Domicile: United Kingdom
• Issuer Ratings: Baa2 (Moody's, stable) / BBB+ (S&P, stable) / BBB (Fitch, stable)
• Expected Issue Ratings: Baa2 (Moody's) / BBB (S&P) / BBB+ (Fitch)
• Format: Public Fixed Rate Bonds
• Size:
  • 5yr: CHF 235m
  • 10yr: CHF 230m
• Settlement Date: 3-Sep-26
• Maturity Date:
  • 5yr: 3-Sep-31
  • 10yr: 3-Sep-36
• Coupon:
  • 5yr: 1.17% p.a.
  • 10yr: 1.6275% p.a.
• Issue Price: 100
• Ranking: Senior Unsecured
• Type: Green
• Lead Manager(s): UBS (JLB) / BNPP (JLB) / Mizuho (JLNB)
• ISIN:
  • 5yr: CH1593191070
  • 10yr: CH1593191088
• Security Number:
  • 5yr: 159319107
  • 10yr: 159319108
• SNB Repo-eligibility: At the discretion of the SNB, expected no
• Documentation: Issuer’s € 20,000,000,000 Euro Medium Term Note Programme as documented in the base prospectus dated 19-Aug-25, as supplemented, amended and/or updated from time to time. Prospective investors are informed that the Issuer is expected to publish an update of the Base Prospectus on or around 17-Aug-26
• FinSA Prospectus: Delayed approval of the Swiss Prospectus, in accordance with Article 51(2) FinSA
• Governing Law: English
• Covenants: Pari Passu, Negative Pledge, Cross Acceleration in respect of indebtedness above £100,000,000
• SIX Listing: 1-Sep-26
• Denomination: CHF 5,000
• Use of Proceeds: The proceeds of the issue will be allocated by the issuer to finance or refinance Eligible Green Projects as set out in National Grid’s Green Financing Framework
• Sales Restrictions: In particular U.S., European Economic Area, United Kingdom, Japan, Australia, Canada, Hong Kong, Singapore and Belgium as set out in the Base Prospectus
• Target Market: The target market as defined by the manufacturer domiciled in the EEA (MIFID II) is: eligible counterparties, professional clients and, in Switzerland only, retail clients (all channels for distribution), subject to applicable selling restrictions
• Green Bond Framework: https://www.nationalgrid.com/document/558926/download

PRICED: Investitionsbank Berlin €500m 5yr Social Sr Unsec; MS+12bp

IGC European Market: Deal Flow - SSA

Reoffer: 5yr: MS+12bp / 100 / 3.125%
Benchmark: 5yr: OBL 2.9 31 #194 @ 100.138 / B+25.7bp

Final Books: In excess of €1.9bn (incl. €225m JLM). Peak book in excess of €1.9bn.

Spread set at: 5yr: MS+12bp - Books in excess of €1.9bn (incl. €200m JLM interest)
Book Update: Books > €1.4bn (inc €200m JLM)
Guidance: 5yr: MS+14a

• Issuer: Investitionsbank Berlin (IBB)
• LEI: 529900OBCZMX3TFA0673
• Issuer ratings: Aa1 / AAA (Stable) by Moody's and Fitch
• Guarantor: German Federal State of Berlin
• Format: Reg S Bearer (0% RW, Senior Unsecured, LCR Level 1)
• Size: €500m
• Coupon: 3.125% Fixed Rate, Annual, Act/Act (ICMA)
• Settlement: 20-Aug-26 (T+5)
• Maturity: 20-Aug-31
• ISIN: DE000A4DFVS1
• Spread: MS+12bps
• Reoffer: 100 / 3.125%
• Benchmark: +25.7 bps OBL 2.9 31 #194 (@ 100.138 / 2.868% / HR: 97%)
• Law/List/Denoms: German / Munich / €100k+100k
• Bookrunners: BayernLB, CACIB, DB (B&D), DZ, LBBW
• Target Market: The target market for the bonds is professional clients and eligible counterparties, each as defined in MiFID II.
• Fees: The lead managers will be paid a fee in connection to the transaction
• UoP: The proceed will be allocated to Eligible Social Projects as defined in the Social Bond Framework.
• Timing: Priced. TOE: 14:09 UKT / 15:09 CET | FTT immediately.
• Notes: The Social Bond Framework, the Second Party Opinion by ISS ESG and the Investor Presentation can be consulted on IBB's website:
  • English: https://www.ibb.de/en-ir
  • German: https://www.ibb.de/ir

PRICED: Commonwealth Bank of Australia £650m 10NC5 T2; UKT+120bp

IGC European Market: Deal Flow - General

Reoffer: 10NC5: UKT+120bp / 100 / 5.597%
Benchmark: 10NC5: UKT 0.25% 31-Jul-31 @ 81.693

Final Books above £1.6bn+. Peak book above £2.2bn+ (pre-rec)

Launched: 10NC5: £650m @ UKT+120bp - Books above £1.7bn+ (incl. £25m JLM) (pre-rec)
Spread set at: 10NC5: UKT+120bp - Books above £2.2bn+ (incl. £20m JLM) (pre-rec)
Book Update: Books > £1.5bn+
IPTs: 10NC5: UKT+145bp area

• Issuer: Commonwealth Bank of Australia (ABN 48 123 123 124) (the “Issuer” or “CBA”)
• LEI: MSFSBD3QN1GSN7Q6C537
• Format: Fixed rate reset subordinated notes (the “Subordinated Notes”)
• Form of Notes: Registered Notes
• Status of Notes: Direct, subordinated and unsecured obligations of the Issuer and will rank in the winding up of the Issuer (a) after the claims in respect of Senior Ranking Obligations including claims preferred by applicable laws, (b) equally among themselves and with claims in respect of Equal Ranking Securities and (c) ahead of all claims in respect of Junior Ranking Securities including claims referred to in sections 563AA and 563A of the Corporations Act 2001 (Cth) (the “Corporations Act”).
• Issuer Ratings: Aa2 (Stable) / AA- (Stable) / AA (Stable) (Moody's / S&P / Fitch)
• Expected Issue Rating: A2 / A- / A (Moody’s / S&P / Fitch)
• Currency / Size: £650m
• Settlement Date: 21-Aug-26 (T+6)
• Optional Redemption Date: 21-Aug-31 (5-year)
• Maturity Date: 21-Aug-36 (10-year)
• Re-offer Spread: UKT+120bps
• Price: 100
• Yield: 5.597%
• Benchmark UK Gilt: UKT 0.25% 31-Jul-31 @ 81.693 (mid) / 81.673 (bid)
• Rate of Interest: 5.597% per annum payable semi-annually in arrear on each Interest Payment Date for the period from (and including) the Issue Date to (but excluding) the Optional Redemption Date. If the Subordinated Notes have not been redeemed, purchased and cancelled, written-down or exchanged by the Issuer on or before the Optional Redemption Date, the interest, payable semi-annually in arrear for the period from (and including) the Optional Redemption Date to (but excluding) the Maturity Date, shall reset to a fixed rate per annum equal to the aggregate of the applicable Reset Reference Rate and the Reset Margin of 1.2%.
• Reset Reference Rate: Five-year UK Gilt Rate at approximately 11am (London Time), on the second Business Day preceding the Optional Redemption Date, as determined by the Principal Paying Agent
• Spread vs. Reset Reference Rate: 120bps
• Interest Payment Dates: 21 February and 21 August in each year commencing 21-Feb-27, subject to adjustment for payment purposes only in accordance with the Business Day Convention specified below.
• Day Count Convention: Actual/Actual (ICMA), Unadjusted
• Business Day Convention: Following, in the case of payment only
• Business Days: London, New York, Sydney
• Optional Redemption: Issuer Call (in full and not in part) on the Optional Redemption Date, as described in the Information Memorandum and in the pricing supplement relating to the Subordinated Notes (the “Pricing Supplement”). The Subordinated Notes will be redeemed at their then outstanding principal amount together with any accrued but unpaid interest as at the date fixed for redemption. Among other things, prior written APRA approval is required by the Issuer to redeem the Subordinated Notes on the Optional Redemption Date. Holders should not expect that APRA approval will be forthcoming.
• Early Redemption at the option of the Issuer (Regulatory Event, for taxation reasons): Issuer may redeem the Subordinated Notes (in full and not in part), subject to the Conditions (including APRA having given prior written approval), for certain taxation or certain regulatory reasons, as described in the Information Memorandum, at their then outstanding principal amount together with any accrued but unpaid interest as at the date fixed for redemption. Prior written APRA approval is required, and such approval is at the discretion of APRA and may or may not be given.
• Clean-Up Redemption at the option of the Issuer: Not Applicable.
• Non-Viability Trigger Event: A Non-Viability Trigger Event occurs when APRA notifies the Issuer in writing that it believes: (a) an Exchange of all or some Subordinated Notes, or conversion or write down of capital instruments of the CBA Group, is necessary because, without it, the Issuer would become non-viable; or (b) a public sector injection of capital, or equivalent support, is necessary because, without it, the Issuer would become non-viable
• Exchange following a Non-Viability Trigger Event: Mandatory conversion into ordinary shares of Commonwealth Bank of Australia (ACN 123 123 124) if a Non-Viability Trigger Event occurs. Permanent write-down if conversion fails within 5 Ordinary Share Business Days after the date of the occurrence of the Non-Viability Trigger Event
• Use of Proceeds: General corporate purposes
• Governing law: English law except as to the subordination, exchange, write-down and substitution provisions which are governed by New South Wales law
• Programme: The Issuer’s US$70,000,000,000 Euro Medium Term Note Programme (the "Programme"), as described in the Information Memorandum relating to the Programme dated 30-Jun-26 (the "Information Memorandum")
• Denoms / Listing: GBP 100k x 1k / Application is expected to be made for the Subordinated Notes to be quoted on the Australian Securities Exchange (“ASX”). The Subordinated Notes will not be traded on the ASX.
• Joint Leads: Commonwealth Bank of Australia, Deutsche Bank AG London Branch, HSBC Bank plc, Lloyds Bank Corporate Markets plc (B&D) and RBC Europe Limited
• Target market: MiFID II / UK MiFIR Professional Clients and Eligible Counterparties only (all distribution channels permitted by applicable law). No EEA PRIIPs or CCI product summary has been prepared as not available to retail in EEA or UK
• Clearing: Euroclear / Clearstream
• ISIN / Common Code: XS3476611473 / 347661147
• Timing: Priced. TOE: 15.00 LDN | FTT: 15.15 LDN

Tier 2
10NC5 (Aug 2036) @ G+145a
Implied Spread for fresh 10yr @ G+115
Priced at G+120
NIC of +5

Details correct at time of posting