Commentary & Deal Flow

Corporate

LIVE DEALS:

• Schneider Electric SE (exp. Issue rating of A by S&P) brought a fresh 6-tranche € benchmark, senior unsecured, Reg S Cat 2 Bearer offering. The deal was made up of a 2yr FRN, 4yr, 6yr, 9.1yr (2 Dec 35), 12yr & 20yr fixed trades. We shall keep this order throughout updates. IPTs (all in the ‘area’ of, were 3mth €+70, MS+90, MS+115, MS+140, MS+155 & MS+190.
  • Today’s offering is in part to refinance the bridge financing for the acquisition of PTC Inc - hence the magnitude of the offering. Their most recent trade was a dual-tranche in June with a €800m 2yr FRN at 3mth€+30 (27.5bps tighter than IPTs from a €1.55bn book) & a €700m 7.5yr at MS+58 (34.5bps tighter than IPTs from a €2bn book). In August 2025 Schneider issued a 4-tranche €3.5bn offering to help finance its acquisition of the remaining 35% stake in Schneider Electric India Private Limited (SEIPL), bringing the company to full ownership of its Indian subsidiary. In November of that same year they priced a €750m 4.6yr at MS+50 (30bps tighter than IPTs from a €2.45bn book), in part to help finance some of the aforementioned SEIPL acquisition.
• Gek Terna S.A. (exp. Issue ratings of Baa3 / BBB- by Moody’s & S&P), brought their anticipated senior unsecured offering, which took the shape of a €500m (wng) 7yr. IPTs on the trade were MS+165 to +170. Books first reported at above €1.5bn.
  • The vertically integrated leading infrastructure group in Greece, owns & operates critical concessions in the country. It last issued a public bond on the 25th of September last year when it priced a €500m 7NC2 with a coupon of 3.2% priced at par.
• Dover Corporation (exp. Issue ratings of Baa1 / BBB+) brought a new € benchmark, senior unsecured 4yr with IPTs in the area of MS+115 to +120. The deal is SEC Registered.
  • Dover is an American firm that manufactures fueling systems, refrigeration & fluid-handling technologies amongst other things. They are an infrequent visitor to the US & European capital markets, having last priced a €550m 8yr back in November 2025 at MS+98 (32bps tighter than IPTs from a €1.8bn book). Prior to that we have to go back to 2019. UOP’s for today’s trade are to repay the issuer's €600m, 2026 notes issued in 2016 (maturing on the 9th of November) & to fund a recent tender.

MANDATED DEALS:

• No Supply

FIG

LIVE DEALS:

• No Supply

MANDATED DEALS:

• 19th October: Sumitomo Life Insurance Company (exp. Issue ratings of A- / A- by S&P & Fitch) mandated JP Morgan, BofA Securities, Goldman Sachs, SMBC Nikko & BNP Paribas to arrange a series of fixed income investor conference calls commencing Monday the 19th October. JP Morgan will be coordinating logistics. A potential € benchmark, Reg S, Fixed to fixed, step-up 30NC10 callable subordinated bond offering will follow, subject to market conditions.

SSA

LIVE DEALS:

• European Stability Mechanism (ESM) (rated Aaa / AAA / AAA / AAA by Moody’s, S&P, Fitch & Scope) brought their anticipated & inaugural Digitally Native Note long 3yr (8th April 2030) transaction. The €1bn (wng) offering came with guidance in the area of MS+5. Books were first called at over €2.2bn (inc. €225m JLMs) & the deal launched for the pre-set €1bn at MS+3.
  • The Digitally Native Notes will be issued on a distributed ledger technology (DLT) platform (aka ‘Blockchain’) rather than being retroactively digitized paper certificates. The DLT platform will be operated by Clearstream Europe AG (D7 DLT Platform) & in the context of the Eurosystem's Pontes initiative. The Digitally Native Notes are eligible for clearance & settlement through all traditional Clearstream Banking & Euroclear Bank SA/NV rails. By utilising smart contracts to embed compliance directly into the instrument, DNNs deliver several key benefits, including near-instantaneous or same-day settlement (T+0) that drastically reduces counterparty risk, while simultaneously eliminating traditional intermediary & administrative costs. The format also automates the life-cycle of the notes, namely such key events like coupon payments & redemptions. These are all benefits valued highly by investors.
  • ESM’s recent deals included a €2bn 5yr on the 26th of May, priced at MS+6 (2bps tighter than guidance from a book of €21.5bn). Prior to that was a €2.5bn 10yr on the 3rd of February, that priced at MS+18 (3bps tighter than guidance from a €23.6bn book).
• The Free and Hanseatic City of Hamburg (rated AAA / AAA by Fitch & Scope) mandated since the 16th of October, brought their expected inaugural Green, €500m (wng) 10yr senior unsecured offering in LSA format. The trade came with guidance in the area of MS+29. Books grew fast to above €1.45bn (inc. €205m € JLMs) & the deal launched for €500m at MS +27.
  • Today’s trade is their 5th public € offering of 2026. Their last print was on the 9th of September with a €1bn 6yr at MS+12 (flat to guidance, with a €1.55bn book). Most relevant to today’s trade was the one prior to that on the 23rd of June, when they priced a €500m 10yr at MS+24 (again, flat to guidance from a book of €970m).

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.