Crédit Agricole Italy successfully placed covered bonds for one billion euros. In detail, it is a new issue of bank bonds which represents the longest operation of its kind launched on the market since the beginning of the year.
11-year maturity, 3,50% coupon
The issue recorded a demand greater than 1,6 times supply thanks to a strong participation of international investors. The bond, amounting to 1 billion euros, he has one duration of 11 years, with maturity set for June 24, 2037 and pays a gross annual coupon of 3,50%The yield offered is equal to mid-swap rate plus 59 basis points, approximately 16 basis points lower than that of a BTP of similar duration.
The order book opened on Tuesday, June 16, with an initial price indication in the mid-swap area plus 65 basis points, and the final spread was set at 59 basis points due to strong demand.
The operation falls within the 16 billion covered bond program of euros of the group, guaranteed by Italian residential mortgages, and is expected to obtain an Aa2 rating from Moody's.
The transaction was managed by Crédit Agricole Corporate and Investment Bank as Global Coordinator and with joint bookrunners Crédit Agricole Corporate and Investment Bank (B&D), BBVA, Erste Group, Mediobanca, Raiffeisen Bank International and Santander.
