CREDIT SUPPLY: FIG Primary: EUR3bn Raised, 3.82x Cover, Tight To FVs

FIG primary monitor – four deals have all gone to final terms. EUR3bn raised across 4 issuers, aggregate cover 3.82x. Against our fair values, two came tight (ABN and Novo Banco) and BPM with a meagre 2bp NIC.

• ABN-Amro (ABNANV: Baa1/BBB/A) AT1 priced inside our FV (priced: 6.375%, our FV: 6.4%) and was 7x covered (sized at EUR750m, books >EUR5.3bn). A great result and another AT1 issue with strong investor demand.
• Banco BPM (BAMIIM: Baa3/BB+ pos/BBB-) social SNP priced at MS+147bp (our FV: MS+145bp). Sized at EUR750m, 4.4x covered (books >EUR3.3bn). Another strong demand issue, potentially linked to the social element.
• Novo Banco (NOVBNC: Baa1/BBB-) senior pref priced to tight to its own ‘28s at a year’s shorter workout. That appears too tight to us. For the record, priced at MS+100bp with 3.2x book coverage.
• ING-Diba (INTNED: Baa1 pos/A-/A+) covered went at MS+27bp, 1.25x covered.

Mandates:

• Alpha Services (ALPHA: Ba2 pos/B+ pos/BB- pos) EUR300m PerpNC6 AT1
• Luminor Bank (LUMINO: A3) EUR300m WING 4NC3 senior preferred.
• Moneta Bank (MONBNK: A2) EUR300m 6NC5 senior preferred.
• Banco Desio (BANDES: BB+) EUR500m 5Y covered.