Of Special Interest


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21st September 2012

Inaugural Credit Agricole Public Sector covered bond

Crédit Agricole S.A. has successfully launched the inaugural issue of covered bonds by Crédit Agricole Public Sector SCF (CA PS SCF), its new société de crédit foncier dedicated to public-sector refinancing.

CA PS SCF is approved by the Autorité de Contrôle Prudentiel, as a société de crédit foncier (SCF). The issue of obligations foncières is backed by a portfolio of export credits originated by CA-CIB. These credits, which are guaranteed by the COFACE, Euler Hermes or ECGD export credit agencies on behalf of governments, are public exposure eligible for the SCF.

CA-CIB has thus been able to secure a competitive refinancing supporting its expansion in the guaranteed export credit business, a segment in which CA-CIB has been solidly established as a leader over decades. The €10bn 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 more familiar mortgage covered bonds.

The inaugural issue was for €1bn with a 7 year term and 1.875% coupon. There was demand from 80 investors which totalled €1.5bn, Buyers came from various European countries, the Middle East and Africa. The issue was AAA /Aaa rated by S&P and Moody's.