June 05, 2024 08:53 GMT
Engie (Baa1 / BBB+ / A-): Hybrids FV
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Engie has existing 4yr perps (sen-sub +99 bps) and 6.6yr perps (sen-sub +90 bps) both of which are Green.
- Given that Engie is IG at the Hybrid level (Baa3 / BBB-) a Sen-Sub spread inside that of AEMSPA & TRNIM is justified.
- Sen-Sub 6yr +95 to get 4.60% FV (2.84 + sen 81bp + sub 95bp)
- Sen-Sub 9yr +105 to get 4.84% FV (2.79 + sen 100bp + sub 105bp)
IPT are 5-5.125% and 5.375% respectively
Source MNI & Bloomberg
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