• Today concluded a full week of activity in the primary markets, with € IG having been active every day to deliver an impressive €36.75bn. This is easily the busiest we’ve seen this same week, looking back over the last decade. We had €31.1bn 2 years ago, & €28.3bn in 2023, but for the same week last year the market only managed €23.2bn € IG.
• Despite being a Friday mid-August we still had trades in € IG with €1.25bn, from 2 issuers (1 x FIG & 1 x SSA), via 2 tranches.
• Away from €’s the other core IG markets of £, Chf & US$ Reg S were silent.
• The “Talking Point” today (below) concludes our look at IG supply for the final week of August & the whole of September for last year. Today we focus on Swiss Franc (Chf).
• Brent crude prices moved just marginally higher, currently trading at c.$93.77 (from $93.45 this morning).
• European equity bourses are mostly higher today, with the Dax, the CAC 40 & the FTSE up 0.40%, 0.22% & 0.26% respectively (as we go to press).
• 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: €750m
    • Avg. tranche size €750m
    • Avg. IPT to Pricing NA (covered)
    • Avg. IPT to Pricing -12.5 (unsecured)
    • Avg. cover 1.6 X
  • SSA
    • Total IG: €500m
    • Avg. tranche size €500m
    • Avg. IPT to Pricing -4
    • Avg. cover 6.6 X

• Pipeline: Currently there are 3 pending transactions in the IG pipeline.
  • 1 x € Corp (dual-tranche EuGB)
  • 1 x € FIG (covered)
  • 1 x £ SSA (w/o 7th Sept)

Talking Point

• We conclude our look back at the last week of August & the whole of September from 2025, today we review non-domestic IG Swiss Franc supply for that period. 
• While we expect issuance in Chf to continue at pace, last year volume was comparatively light with  Chf2.74bn from 14 issuers via 16 tranches.
• Corporate issuers dominated with over 55% of supply (Chf1.52bn).
• Other key takeaways are that there is little bias to nationality, with a diverse range of global borrowers seeking diversity from the Swiss market. US issuers account for over 26% of volume (Chf730m, with a healthy range of other nationalities making up the balance.

Euro IG (today)

• Banque Fédérative du Crédit Mutuel - BFCM (exp. Issue ratings of Baa1 / BBB+ / A- by Moody’s, S&P & Fitch) announced an 11NC6 Tier 2 offering maturing 1st September, 2037. IPTs on the trade were MS+150 to +155. Books were called at over €950m, when spread set at MS+140. Books rose to €1.2bn (inc. €50m JLMs) & the deal was launched & priced for €750m at MS+140.
  • BFCM is a frequent issuer in the € IG public markets, having issued 5 various senior offerings YTD. Their last Tier 2 was a €750m, 10.5NC5.5 issue on the 4th of November 2025, which it priced at MS+140; 27.5bps tighter than the mid-point of the IPT range. Books on that trade were €1.6bn. BFCM also issued another Tier 2 in January 2025, pricing a €1.25bn, 10NC5 at MS+175; 40bps tighter than IPTs from a €3.6bn book.

• Agence France Locale (rated A+ / A+ by S&P & Fitch), having mandated yesterday, brought its anticipated Long 8yr Sustainable €500m (wng) maturing on March 20th, 2035. Guidance on the trade was in the area of OAT+20 (mid OAT’s), equivalent to MS+90 area at the time of the announcement. Books quickly hit in excess of €3bn (inc. €175, JLMs) & guidance was revised to OAT +17 area (+/- 1bp WPIR). Spread was set & the deal priced at OAT+16, with books having grown to €3.3bn (inc. €175m JLM). 
  • This is the 2nd time AFL has issued in the public € markets in 2026, having last printed a €500m, 7.25yr senior unsecured offering at OAT’s+18; 3bps tighter than guidance. Books on that trade were an impressive €3.7bn (7.4 times oversubscribed). AFL typically taps the public € markets twice a year, never issuing larger than €750m. As a reminder AFL was downgraded to A+ from AA- in October of last year.

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• None.

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

• None.  

Week-to-date volumes:

US$ Reg S (today)

• None.

Pending Deals & Mandates

Euro (€)

• 21st August: TenneT GmbH & Co. KG (exp. Issue ratings of Baa2 / BBB by Moody's & Fitch), the largest electricity transmission system operator in Germany (by network length), has mandated Deutsche Bank & ING as Joint Hybrid Structures, ING as Sole Sustainability Structurer & Crédit Agricole CIB, Deutsche Bank, ING (B&D), Mizuho, Morgan Stanley & Santander as Joint Active Bookrunners, to arrange a series of fixed income investor calls on the 21st & 24th of August.  Morgan Stanley is coordinating logistics. A debut € denominated, EuGB, RegS, bearer, CGN, hybrid dual-tranche bond offering across 30.25NC5.25 & 30.5NC8.5 tranches is expected to follow, subject to market conditions. 

• 21st August: Raiffeisen Landesbank Vorarlberg mit Revisionsverband eGen (exp. Issue rating of Aaa by Moody’s) mandated DZ Bank, Erste Group, Helaba, Raiffeisen Bank International & UniCredit as Joint Bookrunners for its upcoming RegS Bearer €300m (wng), 5yr, fixed-rate Mortgage Covered Bond transaction - European Covered Bond (Premium). The deal is expected to be ECB eligible, LCR Level 2a and it is ECBC Covered Bond Label compliant. The transaction will be launched in the near future, subject to market conditions.

Sterling (£)

• 21st August: United Kingdom (Aa3 / AA / AA- by Moody’s, S&P & Fitch), mandated BofA Securities, Goldman Sachs International Bank, JPMorgan, Santander & UBS Investment Bank to lead manage the syndicated re-opening of the 5.375% Treasury Gilt 2056. The transaction is currently planned to take place in the week commencing 7th September 2026, subject to demand & market conditions.

Transaction Details

PRICED: Agence France Locale €500m Long 8yr Sr Unsec; OAT+16bp

IGC European Market: Deal Flow - SSA

Reoffer: Long 8yr: OAT+16bp / 99.486 / 4.075%
OAT Ref (Mids): FRTR 3% 25-Nov-34 @ 93.915% / Yld 3.874% and FRTR 3.20% 25-May-35 @ 94.607% / Yld 3.939%

Final books in excess of €3.5bn (inc €175m JLM interest).

Launched: Long 8yr: €500m @ OAT+16bp - Books in excess of €3.3bn (inc €175m JLM interest)
Rev Guidance: Long 8yr: OAT+17a (+/- 1bp WPIR) - Books in excess of €3bn (incl. €175m JLM interest)
Guidance: Long 8yr: OAT+20a

• Issuer: Agence France Locale
• Ticker: AFLBNK Govt
• Guarantor: Agence France Locale – Société Territoriale (the "ST") and Members of the Agence France Locale Group
• LEI: 969500NMI4UP00IO8G47
• ISIN: FR001401AN14
• Ratings: A+ (stable) / A+ (stable) (S&P/Fitch)
• Format: Senior Unsecured Notes, Reg S Bearer Dematerialised form, Sustainability bond
• Status: Senior Unsecured, HQLA1
• Size: €500m
• Coupon: 4.000%, Annual, Act/Act, short first coupon
• Reoffer: OAT+16bp / 99.486% / Yld 4.075%
• OAT Ref (Mids): FRTR 3% 25-Nov-34 @ 93.915% / Yld 3.874% and FRTR 3.20% 25-May-35 @ 94.607% / Yld 3.939%
• Benchmark: HR 106% vs FRTR 3% Nov-34
• Hedge Deadline: 12.45 LDN / 13.45 CET
• Maturity: 20-Mar-35
• Settlement: 27-Aug-26 (T+4)
• Denominations: €100k + €100k
• Listing: Euronext Paris Regulated Market
• Law: French law
• Bookrunners: Credit Agricole CIB, Deutsche Bank (B&D / DM), NatWest, Nomura and Nordea
• ESG Structurer: Credit Agricole CIB
• Timing: Pricing today.
• Sustainable Bond Framework: https://www.agence-france-locale.fr/app/uploads/2023/02/afl_sustainability-bond-framework_vf_eng.pdf
• Target Market: MIFID II / MIFIR professionals/ECPs-Only/No PRIIPs KID – Manufacturer target market (MIFID II / MIFIR 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 (or in the UK).
• Advertisement: This communication is an advertisement for the purposes of Regulation (EU) 2017/1129 and underlying legislation. It is not a prospectus. The prospectus, supplements and the final terms will be available on the website of the AMF (http://www.amf-france.org) and of the Issuer (https://www.agence-france-locale.fr/en/page-investisseurs_eng/funding/prospectus/)

PRICED: Banque Fédérative du Crédit Mutuel €750m 11NC6 T2 FXD; MS+140bp

IGC European Market: Deal Flow - General

Reoffer: 11NC6: MS+140bp / 99.861 / 4.527%
Benchmark: +153bp vs DBR 1.7 15-Aug-32 (93.000 / HR 100%)

Tranche 1 (11NC6): Final Books €1.1bn (incl. €50m JLM). Peak book €1.2bn (incl. €50m JLM)

Launched: 11NC6: €750m @ MS+140bp - Books €1.2bn (incl. €50m JLM)
Book Update: Books subject
Spread set at: 11NC6: MS+140bp - Books over €950m
IPTs: 11NC6: MS+150/155bp

• Issuer: Banque Fédérative du Crédit Mutuel ("BFCM")
• LEI: VBHFXSYT7OG62HNT8T76
• Instrument: Tier 2 Resettable/Callable Subordinated Fixed Rates Notes
• Status of Notes: Qualifying Subordinated Notes pursuant to Article L. 613-30-3-I-5° of the French Code monétaire et financier and Article L. 228-97 of the French Code de commerce, ranking as provided for in Condition 2(b)(i). Should Qualifying Subordinated Notes become Disqualified Subordinated Notes, they will automatically rank as provided for in Condition 2(b)(ii)
• Form of the Notes: Dematerialised Notes in Bearer form (au porteur)
• Issuer Ratings: A1 (negative outlook) by Moody's / A+ (stable outlook) by S&P / AA- (negative outlook) by Fitch Ratings
• Expected Notes Ratings: Baa1/BBB+/A- (Moody's/S&P/Fitch)
• Size: €750m
• Coupon: 4.5% Annual fixed, Act/Act ICMA. Resets at the Reset Date at the Mid-Swap Rate plus the Initial Margin.
• Maturity Date: 01-Sep-37 (11-year NC 6-year)
• Reset Date / Optional Redemption Date: 01-Sep-32 (6-year)
• Settlement/Issue Date: 01-Sep-26 (T+7)
• Reoffer: MS+140 / 4.527% / 99.861
• Benchmark: +153bp vs DBR 1.7 15-Aug-32 (93.000 / HR 100%)
• Events of Default: No Events of Defaults in respect of Subordinated Notes
• Negative Pledge: None
• Cross Default: None
• Acknowledgement of Bail-In and Loss Absorption Powers: Applicable
• Waiver of Set-Off: Applicable
• Optional early redemption: The Issuer may (at its option but subject to preliminary approval of the Regulator and Condition 4(l) (Conditions to redemption prior to Maturity Date in the case of Subordinated Notes) redeem the Notes, on the Optional Redemption Date (Call) in whole at par together with accrued interest
• Point of non-viabilitiy: Statutory, within risk factors
• Representation of Noteholders: No Masse
• Specified Denominations: €100k
• ISIN Code: FR001401AN55
• Common Code: 348436872
• Joint Lead Managers and Bookrunners: BNP Paribas, CIC CIB, HSBC (B&D), J.P. Morgan
• Listing/Docs: Euronext Paris / Issued under the BFCM EMTN Programme's Base Prospectus dated 17-Jul-26 (as supplemented on 18-Aug-26), and the Final Terms of the Notes
• Governing law: French Law
• Stabilization: ICMA/FCA
• MIFID II/UK MIFIR Target Market: Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only type of clients (all distribution channels). No EU or UK PRIIPs key information document (KID) / CCI product summary has been prepared as not available to retail in EEA or the UK
• MIFID II Co-Manufacturers: Joint Lead Managers and Issuer
• UK MIFIR Manufacturer: Not Applicable
• Selling Restrictions: Reg S (no communications with or into the U.S., no sales into Canada) Category 2, UK, France, Japan, Hong Kong, PRC, Belgium. No sales of Notes to EEA and UK Retail Investors; TEFRA Not Applicable
• Advertisement: This indicative term sheet is an advertisement for the purposes of Regulation (EU) 2017/1129 and underlying prospectus legislation. It is not a prospectus. The Base Prospectus, supplements, and the Final Terms (when published) are available at https://www.bfcm.creditmutuel.fr/en/programs/index.html
• Timing: Priced. TOE 14.03 UKT / 15.03 CET. FTT 14.20 UKT / 15.20 CET

• To view the LIVE / REAL TIME European IG pipeline please click here.
• Details correct at time of posting