Commentary & Deal Flow

Corporate

LIVE DEALS:

• Dell Bank International d.a.c. (exp. Issue rating of Baa2 by Moody’s) brought a €500m (wng) 5yr, senior unsecured, RegS bearer issue with IPTs of MS+110 to +115.
  • Dell Bank International DAC (Designated Activity Company) is a licensed financial institution based in Ireland & is directly affiliated with Dell Technologies. It acts as the in-house "captive bank" & financial services arm of Dell Technologies, trading primarily under the name Dell Financial Services (DFS) in Europe. While a bank we are categorising it as a Corp, due to its inextricable links to Dell Tech. Dell International is a frequent issuer in the US$ markets & last issued a $5bn, 4-tranche on September the 9th. Dell Bank last issued in €’s back in June 2024 when they priced a €500m 5yr at MS+85 (25bps tighter than IPTs); prior to that was October 2022 when they brought a €500m 5yr at MS+165 (25bps tighter than IPTs from a book of €600m).

MANDATED DEALS:

• No Supply

FIG

LIVE DEALS:

• Banco BPM S.p.A.(senior ratings are Baa1 / BBB+ / BBB+ / BBBH by Moody’s, S&P, Fitch & DBRS - Exp. issue ratings are BB- / BB by Fitch & DBRS) brought a €400m (wng) Additional Tier 1 Reg S, Perpetual NC 6 offering (first reset 21st October 2032). IPTs in the range of 1.125% to 7.25%.
  • This is the 5th public € offering for the borrower YTD. They issue an AT1 trade every year (eg: Apr 22, Nov 23, Jul 24 & May 25). Last year's deal was a €400m like today (& its 2024 trade), in a PerpNC5 structure pricing at par with a coupon of 6.25%. For context their 2024 deal was PerpNC6.5 which priced to yield 7.25%.

MANDATED DEALS:

• No Supply

SSA

LIVE DEALS:

• The Flemish Community (rated AA- by Fitch), delivered their expected € benchmark fixed rate dual tranche transaction, with guidance on a new short 5yr (22nd August 2031) Sustainable bond in the area of OLO+27 (equiv. MS+59 area); while guidance on a new €500m (exp) short 12yr (22nd June 2038) conventional bond came in the area of OLO+28 (equiv. MS+122 area). Spread set at OLO +24 for the short 5yr with a book above €2.35bn (inc. €115m JLMs). For the short 12yr spread set at OLO +26, from a book above €1.35bn (inc. €150m JLMs). The short 5yr launched for €2bn at OLO+24 with the book having grown to above €3.75bn (inc. €115m JLMs). The short 12yr launched for its expected €500m at OLO+26, from a book above €2bn (inc. €150m JLMs).
  • This is their 3rd visit to the public € markets, having last printed a €1bn 14.5yr at OLO+19 on July 1st (2bps tighter than guidance from a book of €4.6bn). Prior to that, in February, they brought a €2bn 10.5yr at OLO+17 (4bps tighter than guidance from a book of €14.3bn).
• The European Investment Bank (rated Aaa / AAA / AAA / AAA by Moody's, S&P, Fitch & DBRS), as expected brought their new €3bn (wng) 7yr EARN (15th November 2033). The RegS, Registered, Cat1 offering came with guidance in the area of MS+18. The deal launched early for €3bn at MS+15, from a book of over €33bn (inc. €800m JLMs), rising to close in excess of €37.5bn (inc. €875m JLMs).
  • This trade marks the 8th public € offering of 2026 for the EIB, all of which have been single tranche trades. The most recent print, on the 2nd of September, was a €5bn 5yr Green, EARN issuance, which priced at MS+6 (3bps tighter than guidance from a book of €46.5bn). Their last 7yr print was a €4bn on the 4th of March last year.
• The Grand Duchy of Luxembourg (rated Aaa / AAA / AAA by Moody’s, S&P & Fitch). Mandated on the 7th of October & post roadshow, they brought their anticipated inaugural 10yr, € benchmark fixed rate Digitally Native Securities. The Digitally Native Securities will be issued on a distributed ledger technology (DLT) platform operated by LuxCSD S.A. (D7 DLT Platform). The Digitally Native Securities are also eligible for clearance & settlement though Clearstream Banking & Euroclear Bank SA/NV. Guidance on the issue was in the area of MS+22. Books were in excess of €2.6bn (inc. €150m JLMs) when the spread was set at MS+20.
  • The borrower last hit the market on the 16th of March with a €2.5bn 10yr senior unsecured trade, priced at MS+19 (3bps tighter than guidance from a large book of €13.5bn). They tapped the market only once with a benchmark trade in 2025; September - again for a €2.5bn 10yr, at MS+30 (5bps tighter than guidance from a book of €18bn). A digitally native securities is a bond, issued, & managed directly on a blockchain or distributed ledger from inception, rather than existing first as a physical certificate & then tokenized latterly. By incorporating smart contracts into their core design, such bonds automate dividend distributions, compliance checks, & settlement, offering near-instant clearing, enhanced transparency, & continuous 24/7 trading without relying on legacy clearinghouses or paper registries.
• The African Development Bank (rated Aaa / AAA / AAA / AAA by Moody's, S&P, Fitch & Japan Credit Rating Agency), brought its anticipated 5yr, Social, € benchmark (Global SEC exempt). Guidance on the offering was in the area of MS+11. Books were first called in excess of €1.5bn (inc. €200m JLMs) & the spread set at MS+10.
  • AfDB’s last public € offering was on the 3rd of June, when they priced a €1.25bn 7yr Social bond at MS+14 (2bps tighter than guidance from a book of €2.1bn). AfDB has also issued public trades in 2026 in AUD, US$ & Sterling.

MANDATED DEALS:

• 6th October: His Majesty’s Treasury (HMT) of United Kingdom has mandated Barclays, HSBC, Lloyds, Morgan Stanley, NatWest & RBC for its Digital Gilt Instrument (DIGIT) pilot issuance following a competitive procurement process. The transaction is expected to take place by Q1 2027. This follows the appointment of HSBC as the Distributed Ledger Technology (DLT) supplier in February, & the announcement in July that HSBC & LSEG have signed a memorandum of understanding to deliver a bilateral Digital Securities Deposit link.

• To view the LIVE / REAL TIME European IG pipeline please click here.