Credit Agricole refinances ECA loans via public covered bond

Victoria
By Victoria September 21, 2012 11:10

Credit Agricole refinances ECA loans via public covered bond

Credit Agricole has launched an inaugural Public Sector covered bond backed by a €1 billion portfolio of aircraft ECA guaranteed loans from COFACE, ECGD and EULER-HERMES originated by CA-CIB for 58%, with the remaining 42% consisting of non aircraft export credit loans.

The bond were issued by Crédit Agricole Public Sector SCF, the bank’s new société de crédit foncier dedicated to public-sector refinancing, which is a wholly-owned subsidiary of Crédit Agricole.

This bond is part of a wider €10 billion programme for the French bank to provide a recurring source of refinancing for its export credit business.

In a statement the bank said: “The €10 billion programme will provide a recurring source of refinancing for this business, while helping to diversify the base of investors active in the Group’s debt. This programme extends the range of Crédit Agricole’s covered bonds beyond the mortgage covered bonds issued by Crédit Agricole Home Loan SFH.”

CA PS SCF’s inaugural €1 billion issue with a 7-year maturity pays an annual coupon of 1.875%, which is equivalent to the swap rate for the same maturity plus 50 basis points.

The issue was reported to be significantly oversubscribed, with more than €1.5 billion orders from over 80 investors.

According to the bank, there was a wide diversity of participation: “The final allocation shows broad diversification, both from a sectoral (predominantly asset managers 38%, insurers 15%, banks 35%, central banks 8%) and a geographical standpoint (mainly France 28%, Germany 26%, Middle East and North Africa 13%, United Kingdom 12%, Southern Europe 9%, Switzerland 5%).”

The issue is rated Aaa/AAA by Moody’s and Standard & Poor’s.

Victoria
By Victoria September 21, 2012 11:10
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