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PTSB Green Sr Unsec Issue: We See FV At MS+155-160bp.

FINANCIALS

Permanent TSB is issuing EUR500m 6.25NC5.25 green senior unsecured with IPT at MS+195bp, we see fair value around MS+155-160bp.

  • PTSB is issuing this EUR500m (WNG) green bond onto a spare senior unsecured curve with few comparators at the same rating (Baa2/nr/BBB-).
  • Local peers AIB and BoI are rated a couple of notches better (see graphic), with Barclays a single notch better. The two Irish bank bonds at 3.5-4Y (AIB 4.625 and BKIR 4.625) are around 40bp or so tighter than the similar workout PTSB 6.625.
  • The Barclays 4.918 is only one notch better rated at MS+130bp so fair value could be as low at MS+150bp. However, this would price it inside the PTSB 6.625 at longer duration. Considering this is a green issue, it may see better demand, so we feel fair value is around 155-160bp. It is notable that NICs have made a reappearance in the last few sessions so are wary of being too aggressive here.


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Permanent TSB is issuing EUR500m 6.25NC5.25 green senior unsecured with IPT at MS+195bp, we see fair value around MS+155-160bp.

  • PTSB is issuing this EUR500m (WNG) green bond onto a spare senior unsecured curve with few comparators at the same rating (Baa2/nr/BBB-).
  • Local peers AIB and BoI are rated a couple of notches better (see graphic), with Barclays a single notch better. The two Irish bank bonds at 3.5-4Y (AIB 4.625 and BKIR 4.625) are around 40bp or so tighter than the similar workout PTSB 6.625.
  • The Barclays 4.918 is only one notch better rated at MS+130bp so fair value could be as low at MS+150bp. However, this would price it inside the PTSB 6.625 at longer duration. Considering this is a green issue, it may see better demand, so we feel fair value is around 155-160bp. It is notable that NICs have made a reappearance in the last few sessions so are wary of being too aggressive here.