• The new issue market took a breather today against a largely negative market backdrop.
• The realities of the Middle East stalemate hit home & Brent surged past $103, onto & over $107.
• Govies again had a rollercoaster. JGB’s took their turn selling-off, following Europe & the US yesterday. Early in Europe the markets dabbled with a further rout, yet rallied into the afternoon, with the shorter end of the curves benefiting most.
• With the Covered bond conference taking place in Seville today, the 3 covered deals in the pipeline were never really slated for today. The remaining 3 deals in the pipe priced, with no other activity.
• € IG priced a modest €1.25bn from 2 deals (2 x SSA) via 2 tranches.
  • Week-to-date we have seen €35.7bn from (31 deals / 40 tranches)
  • Slightly exceeded the week's forecast of €34.93bn (102.2%).
• Sterling (£) priced £250m from 1 deal (1 x Corp) via 1 tranche.
• Zero activity in both Swiss Franc & US$ Reg S markets.
• Today’s “Talking Point” (below) is the second of a 3-part series looking at € IG ESG issuance YTD. Following up on the analysis of Corp, FIG & SSA supply we breakdown ESG bond types.
• iTraxx Europe & the iTraxx Senior & Sub financial indices all widened yet again, but less than yesterday, currently trading at 60.658 (+2.45%), 65.130 (+2.38%) & 107.147 (+2.85%) respectively (as we print).
• Brent Crude rocketed higher, currently trading at c.$107.21 (c.$103.1 this morning).
• European equity bourses were mixed again with the FTSE up for a second session (up by -0.04%), while the Dax & CAC 40 were lower for a second day too by -0.44% & -0.47% respectively.
• A breakdown of today’s primary € IG 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) - €0
  • Avg. IPT to Pricing NA (unsecured) - €0
  • Avg. cover  NA
• SSA
  • Total IG: €1.25bn
  • Avg. tranche size €625m
  • Avg. IPT to Pricing -14.5
  • Avg. cover 2.18 X

• Pipeline: The European IG pipeline had half its trades clear today with 3 € covered trades remaining. 
  • 3 x € FIG (3 x Covered & 1 x Green)

Contact Stuart Aylward with questions or comments on stuart@creditflowresearch.com

Talking Point

• Today's "Talking Point" is the second of our 3-part series on € IG ESG issuance YTD, where we look at  the breakdown of ESG bond types for Corp, FIG & SSA borrowers.
• Green/EuGB dominates across all 3 segments, accounting for 76% of total volume (€231.7bn out of €304.3bn). The label's share is remarkably consistent across sectors, from 66% in SSA & 82% in FIG to 87% in Corp, pointing to broad structural demand.
• Social/SDG is the 2nd largest label overall, but its use is concentrated in FIG & SSA. Of the €41.9bn (14%) total, FIG (€15.7bn) & SSA (€22.5bn) account for 91%, while Corp contributes just €3.7bn, reflecting banks' & public-sector entities' natural alignment with social mandates versus corporates' more limited eligible asset pools.
• Sustainability Linked Bonds are effectively Corporate-only, & remain marginal there too. SLBs total just €2.4bn, all from Corp, with zero from FIG or SSA, confirming the format's structural retreat amid investor scepticism around target ambition & step-up mechanics.

Euro IG (today)

• The Federal State of Brandenburg (rated Aaa by Moody's), brought their anticipated 4yr € benchmark fixed rate Landesschatzanweisung (LSA). Guidance on the trade was in the area of MS+6. Books were very quickly cited at above €750m (inc. €150m JLMs), rising to over €825m, when spread set at MS+5. The deal launched for €750m from a book of over €1.3bn (inc. €100m JLMs). Final books were above €1.325bn (inc. €100m JLMs).
  • Today’s trade is their 2nd public € trade YTD, having last issued a €600m, 6yr senior unsecured offering at MS+15, flat to guidance (from a €1.2bn book). For context they issued 3 €500m trades last year  in 6, 8 & 10yrs.

• Watercare Services Limited (exp. Issue rating of Aa3 by Moody’s), mandated last Wednesday they brought their inaugural 7yr € benchmark, fixed rate, senior secured Reg S transaction. IPTs on the trade were in the area of MS+100. Books were over €1.7bn (pre-rec) & guidance came in at MS+75 area (+/- 3 WPIR). The trade sized at €500m. Books sharpened to over €1.3bn (pre-rec, at the tight end of guidance). The deal launched at MS+72.
  • An SSA entity, Watercare Services Limited, wholly owned by Auckland Council, is New Zealand’s largest water utility providing water & wastewater services to approximately 1.8m people within the Auckland region, where it is a natural monopoly.

Week-to-date volumes:

Year-to-date volumes:

Sterling IG (today)

• Bromford Flagship LiveWest Limited (exp. Issue ratings of A2 / A+ by Moody’s & S&P) brought their anticipated RegS, Category 2, Bearer, Senior Secured, 12yr £250m (wng), Sustainability b. IPTs on the trade were in the area of UKT+105. Books were in excess of £800m & the deal launched for £250m at  Gilts +90. Final books closed in excess of £670m, with final terms for £250m at G+90.
  • The borrower has only utilised the public Sterling markets to-date, having last done so on the 2nd of July last year with a £300m, senior secured, Sustainable 25yr trade which priced at UKT+82 (20.5bps tighter than IPTs).

Week-to-date volumes:

Year-to-date volumes:

Swiss Franc IG (today)

• No issues

Week-to-date volumes:

US$ Reg S (today)

• No issues

Pending Deals & Mandates

Euro (€)

• 21st September: Evangelische Bank eG (exp. Issue rating of AAA by S&P), mandated Commerzbank, DZ Bank & NordLB as Joint Lead Managers for its upcoming €250m (wng) sub-benchmark inaugural Mortgage Covered Bond (Hypothekenpfandbrief) with a 5 to 7yr maturity. The deal is expected to be launched in the near future, subject to market conditions.
• 21st September: Banque et Caisse d’Epargne de l’Etat, Luxembourg (exp. Issue rating of Aaa by Moody’s), mandated Belfius as Global Coordinator & Belfius, Deutsche Bank, LBBW & Natixis as Joint Lead Managers to arrange a series of fixed income investor meetings & calls commencing on the 28th of September. BCEE is also available for meetings at the European Covered Bond Congress in Seville. An inaugural 7yr Green €500m (wng) Covered Bond transaction is expected to follow in the near future, subject to market conditions. European Covered Bond (Premium), ECBC Covered Bond label compliant, RegS bearer.
• 21st September: Fairstone Bank of Canada (exp. Issue ratings of Aa1 / AA by Moody’s & DBRS), mandated RBC Capital Markets as Arranger & Sole Structuring Advisor, & BMO Capital Markets, DZ Bank, LBBW, Natixis & RBC Capital Markets as Joint Active Bookrunners for an inaugural 3yr € benchmark soft-bullet Covered Bond. The Covered Bonds are backed by Canadian residential mortgages. This is the borrower's debut covered bond.

Transaction Details

PRICED: The Federal State of Brandenburg €750m 4yr Sr Unsec; MS+5

IGC European Market: Deal Flow - SSA

Reoffer: 4yr: MS+5bp / 99.821 / 3.674%
Benchmark: 4yr: OBL 2.2% 10-Oct-30 @ 95.666 / B+30.7bp / HR 101%

Tranche 1 (4yr): Final Books above €1.325bn (incl. €100m JLM). Peak book above €1.325bn (incl. €100m JLM)

Launched: 4yr: €750m @ MS+5bp - Orderbook above €1.3bn (incl. €100m JLM)
Spread set at: 4yr: MS+5bp - Orderbook above €825m (incl. €150m JLM)
Book Update: Books above €750m (incl. €150m JLM)
Guidance: 4yr: MS+6a

• Issuer: The Federal State of Brandenburg (Ticker: BRABUR)
• Rating: Aaa by Moody's
• Format: Landesschatzanweisung, 0% RW, Senior unsecured
• Issue Size: €750m
• Coupon: 3.625% Fixed, annual, act/act ICMA, unadjusted following
• Settlement: 30-Sep-26 (T+4)
• Maturity: 30-Sep-30 (4yr)
• Reoffer: MS+5bp / 99.821% / 3.674%
• Benchmark: 30.7 bps vs. OBL 2.2% 10-Oct-30 @ 95.666%; HR 101%
• Joint Leads: DZ Bank, HSBC, J.P. Morgan (B&D), LBBW and Raiffeisen Bank International
• Law/List/Denoms: German/Berlin/ €1k+1k
• Fees: The Joint Bookrunners will be paid a fee in connection to the transaction
• Target Market: Professional, retail and eligible counterparties each as defined in MiFID II (all channels for distribution of the bonds are appropriate)
• ISIN/WKN: DE000A351UV1 / A351UV
• Timing: Priced. TOE: 13.25 CET / 12.25 UK, FTT: 13.40 CET / 12.40 UK

PRICED: Bromford Flagship LiveWest £250m 12yr Snr Sec; G+90

IGC European Market: Deal Flow - General

Reoffer: 12yr: G+90bp / 99.301
Benchmark: 12yr: UKT 3.75% 29-Jan-38 @ Mid (85.876) 5.434% S/A Yield / Bid (85.841) / HR 108%

12yr: Final books in excess of £670m. Peak book in excess of £800m

Launched: 12yr: £250m @ G+90bp - Books in excess of £800m
IPTs: 12yr: G+105a

• Issuer: Bromford Flagship LiveWest Limited (Ticker: BFLLTD, Country: GB)
• Issuer LEI: 213800GKFIZBLASN3454
• Guarantors: Bromford Housing Association Limited, Merlin Housing Society Limited, Flagship Housing Limited, LiveWest Homes Limited
• Issuer Ratings: A2 (stable) (Moody's) / A+ (stable) (S&P)
• Expected Issue Ratings: A2 (Moody's) / A+ (S&P)
• Format: Senior, Secured, Guaranteed, Reg S, Bearer, Sustainable
• Size: £250m
• Settlement: 1-Oct-26 (T+5)
• Tenor: 12 years
• Maturity: 1-Oct-38
• Re-offer: 99.301 / G+90bps
• Benchmark Gilt: UKT 3.75% 29-Jan-38 @ Mid (85.876) 5.434% S/A Yield / Bid (85.841) / HR 108%
• Coupon: 6.25%, Fixed, Semi-Annual, ACT/ACT (ICMA)
• Documentation: EMTN Programme Admission Particulars, International Securities Market, English Law. The £2bn Guaranteed Secured Note Programme dated 9-Sep-26 is available at Microsoft Word - Final Programme Admission Particulars (BFL Update 2026)(106591492.13)(118777768.1). The Pricing Supplement, when published, will be available on the website of the London Stock Exchange www.londonstockexchange.com
• Denominations: £100k + £1k
• Early Redemption: (1) MWC at Benchmark Gilt + 15% of Re-Offer spread (G+15bps) (2) Mandatory early redemption upon any Guarantor ceasing to be a Registered Provider of Social Housing as set out more fully in the Programme Admission Particulars
• Use of Proceeds: Sustainability Bonds, in accordance with the Issuer's Sustainable Finance Framework. The Framework and SPO do not form part of the offering materials and any offer is made solely on the basis of the Programme Admission Particulars dated 9-Sep-26 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) and no UK disclosure document required by DISC have been prepared as the Bonds are not available to retail in the EEA or in the UK
• ISIN: XS3515171232
• Asset Cover Covenant: 105% EUV-SH / 115% MV-ST as further described in the Programme Admission Particulars
• Marketing: https://dealroadshow.finsight.com Entry Code: BFL2026
• Clearing: Euroclear and Clearstream
• Active Bookrunners: HSBC, Lloyds Bank Corporate Markets plc (B&D), RBC Capital Markets
• Selling Restrictions: Regulation S Compliance Category 2, TEFRA D. No sales to EEA or UK retail
• Timing: Priced ToE 14:47 UKT / FTT 15:10 UKT

PRICED: Watercare Services €500m 7yr Snr Sec; MS+72

IGC European Market: Deal Flow - General

Reoffer: 7yr: MS+72bp / 100 / 4.331%
Benchmark: 7yr: DBR 2.6% 15-Aug-33 / B+85.5bp

Tranche 1 (7yr): Final Books above €1.3bn. Peak book €1.7bn+ Pre Rec

Launched: 7yr: €500m @ MS+72bp - Books €1.3bn+ (Pre Rec, at the tight end of guidance)
Guidance: 7yr: MS+75a - Books €1.7bn+ Pre Rec
IPTs: 7yr: MS+100a

• Issuer: Watercare Services Limited
• Issuer LEI: 984500T79F9E43C5EF58
• Programme: The Issuer's U.S.$5,000,000,000 Secured Medium Term Note Programme Offering Circular dated 04-Sep-26 as supplemented from time to time (the "Offering Circular"), as supplemented by the Pricing Supplement to be entered into relating to the Notes. Direct Link: https://links.sgx.com/1.0.0/prospectus-circulars/58161
• Issuer Ratings: Aa3 (stable) Moody's
• Expected Issue Ratings: Aa3 (Moody's)
• Instrument Type: Senior Secured Medium Term Notes
• Format: Bearer Notes, Reg S only (Category 1), TEFRA D
• Size: €500m
• Tenor: 7 years
• Pricing Date: 24-Sep-26
• Settlement: 30-Sep-26 (T+4)
• Maturity Date: 30-Sep-33
• Reoffer Price: 100
• Yield: 4.331%
• Coupon: 4.331%, annual, act/act ICMA
• Spread: MS+72bp
• Benchmark Bund: DBR 2.6% 15-Aug-33 / B+85.5bp
• Guidance: MS+75a (+/- 3bp WPIR)
• IPTs: MS+100bps area
• Business Days/Convention: New Zealand, London, T2 / Following, unadjusted
• Status of the Notes: The Notes and the Receipts and Coupons relating to them will constitute (subject to Condition 4) secured obligations of the Issuer and shall at all times rank pari passu without any preference among themselves, as further described in Condition 3 and "Description of the Security" in the Offering Circular
• Use of Proceeds: General Corporate Purposes
• Change of Control Redemption: Applicable at 100%. See "Terms and Conditions of the Notes – Redemption, Purchase and Options – Redemption at the Option of Noteholders (Change of Control Put Option)" in the Offering Circular
• Other: No 3m Par Call, No Make-whole Call, No Clean-Up Call
• Target Market: Manufacturer target market (MIFID II / UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs or UK PRIIPs key information document (KID) and/or UK CCI Product Summary will be prepared as the Notes are not available to retail investors in the EEA or the UK
• Selling Restrictions: As per the Offering Circular
• Denominations: €100,000 and integral multiples of €1,000 in excess thereof up to and including €199,000. No notes in definitive form will be issued with a denomination above €199,000
• Listing: Singapore Stock Exchange Securities Trading Limited (SGX-ST)
• Law: English Law
• Marketing: Direct Link: https://dealroadshow.finsight.com/e/WATERCEUR26 OR Visit: https://dealroadshow.com and enter the deal entry code: WATERCEUR26 (case-sensitive)
• Joint Lead Managers: Citi (B&D), HSBC, MUFG, Société Générale
• ISIN: XS3512901888
• Common Code: 351290188
• FTT: 3:45pm London

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