New Issue Commentary Suedzucker And Nokia

RBC analyzes new bond issues from Suedzucker and Nokia, recommending a cautious spread approach for Suedzucker due to HY downgrade risks while expecting Nokia's deal to perform well on AI tailwinds.

Key Takeaways

• 1.Suedzucker is issuing new debt at a challenging time, with S&P recently revising its outlook to negative and peer Tereos reporting weak sugar earnings.
• 2.RBC expects Suedzucker to fall to High Yield status within the next 12 months, requiring a wider spread to compensate for the risk.
• 3.Nokia is seeing strong market support and credit upside due to its role in AI infrastructure demand, with its stock up 140% YTD.

Table of Contents

• Suedzucker EU400m WNG 5Y MS+200 Area
• Nokia EU500m WNG 6Y MS+125-130 Area

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