Royal Schiphol (LUCSHI; A2/A Pos) FV
exp. €500m 12Y IPT MS+140/145 vs. FV 110 (-30)
- Amsterdam, Rotterdam, Lelystad and Eindhoven Airports.
- First issuance since April 2021, 100k
We will have to follow-up on fundamentals but we see no evidence of shorter lines commanding a premium over higher rated Norwegian state-owned operator Avinor (A1). Avinor new 34s trade at Z+95 - we have spread Luschi 15bps for a 2.5yr term extension (high-grade airports). The cross-check is Sydney Airports (Baa1/BBB+) new 36s who for the 2-notches gives 30bps. Lucshi's own curve is skewed by legacy low cash px lines.
High grade airports have done well in primary (a subjective observation) - we would not be surprised if this goes through on final.
Normal sector asides: those that benefit from public equities and associated reporting are Fraport {FRA GY Equity} and Aeroport de Paris {ADP FP Equity}. Fraport has 1k denomination on its lines, Sydney Airport has a mix; new 34s are 10k denominated while new 36s are 100k denom.