US DATA: ADP Moderation After Q2 Strength Continues

• Date $MM Issuer (Priced *, Launch #)
• 07/06 $750M Dangote Petroleum 5NC2 7.5%a
• 07/06 $Benchmark CIBC 60.5NC5.5 7%a
• 07/06 $Benchmark BMO 3Y SOFR+40a
• 07/06 $Benchmark IFC 5Y SOFR+33a
• 07/06 $Benchmark KT Corp 3.5Y +85a
• 07/06 $Benchmark Nationwide 6NC5 +110a, 11NC10 +130a
• 07/06 $Benchmark BFCM 3Y +95a, 3Y SOFR+95a, 6NC5 +125a
• 07/06 $Benchmark ENEL Finance 3Y +90a, 5Y +105a, 10Y +130a
• 07/06 $Benchmark Toyota Motor Credit 3Y +65a, 3Y SOFR, 7Y +90a
• 07/06 $Benchmark American Honda 3Y +90a, 3Y SOFR, 5Y +110a, 7Y +120a
• 07/06 $Benchmark Energy Transfer LP 30NC5 6.87%, 30NC10 7.12%a
• 07/06 $Benchmark US Steel 5Y, 10Y investor calls
  • Expected Tuesday:
  • 07/07 $Benchmark Republic of Italy 5Y +70a, 10Y +110a, 30Y +185a

"The Ministry of Economy and Finance has mandated BofA Securities Europe SA, Citigroup Global Markets Europe AG, Goldman Sachs Bank Europe SE and Morgan Stanley Europe SE to act as lead managers for a new triple-tranche syndicated issuance in US dollars, under the Italian Republic’s Programme for the Issuance of Debt Instruments. The bonds are due on 14th of July 2031, 14th of July 2036 and 14th of July 2056.
The transaction will be launched in the near future subject to market conditions."

• We expect the transaction to take place tomorrow. Bookrunners are already taking IOIs with IPTs at IPTs at:
  • 5-year: MS+70/75 (~CT5+43/48)
  • 10-year: MS+110/115 (~CT10+70/75)
  • 30-year: MS+185/190 (~CT30+112/117)
• This will be the first Italy USD bond since 2021.
  2021 saw a dual tranche April transaction USD2.0bln (3-year) and USD1.5bln (30-year) and then a tap of the 30-year (USD1.0bln) in November 2021.