Commentary & Deal Flow

ZF Finance GmbH (ZFFNGR) EUR650m Reg S sr green notes due 08/03/26 (3.5y). NCL (MWC B+50bp), 1mo par call, 80% clean-up call. Expect Ba1/BB+ (stable/stable) (gtd by ZF Freidrichshafen). Via BNP/Commerz/DB (B&D)/Santander jt books. EMTN. List Lux. German law. Coupon pays annual (act/act), short first. Settles 02/03 (T+6). ISIN: XS2582404724. IPT 6.375% area yield. Guidance: 6.00% area (+/- 12.5bp) yield, WPIR. Final terms: EUR650m at 5.875% yield.

Priced: 5.75% at 99.655, yield 5.875%. MS+290.6bp. +357.5bp vs OBL 0% 04/26.

Books went subject at 12:30 UKT today. Final order book $2.15bn (from in excess of EUR2.35bn (pre-rec, at tight-end of guidance). UOP: Eligible Green Projects, as defined in the April 2021 Green Finance Framework. Biz: a global technology company supplying systems for passenger cars, commercial vehicles and industrial technology. HQ: Friedrichshafen, Germany.