(Finance) – Crédit Agricole Italia has successfully concluded its second public issue of the year of a Premium Guaranteed Banking Bond (OBG) on the Italian market, the longest-running placement since the market reopened in June 2023.
The book building process immediately recorded a very favorable response from investors, collecting a demand of 4.6 billion euros, confirming the continued appreciation for Crédit Agricole Italia.
The operation was announced on March 1st at 12.49pm and the book was opened on March 4th with initial guidance at mid swap +90bps; During the morning, around 130 orders quickly arrived, reaching a value equal to almost 5 times the amount placed.
There demand is almost entirely made up of international investorsdemonstrating the renewed trust recognized by
market to Crédit Agricole Italia and the ability demonstrated by the Institute to access the market in different formats, following the success of the Green issue last January.
The issue of 1 billion euros with a duration of 12 years (maturity 11 March 2036) and coupon gross annual rate of 3.50%, offers a yield equivalent to the mid swap rate plus a spread of 85 basis points, 37 bps below the yield of the BTP of similar duration.
Managed by Crédit Agricole Corporate and Investment Bank as Global Coordinator and with joint bookrunners Crédit Agricole Corporate and Investment Bank (B&D), IMI-Intesa SanPaolo SpA, BBVA, Raiffeisen Bank International AG and LBBW, the issue is part of of the 16 billion euro Covered Bond program of Crédit Agricole Italia with Italian residential mortgages as underlying.
A rating of Aa3 from Moody’s is expected.