Credit Agricole Italia: covered bonds worth 1 billion placed, with a coupon of 3.50%

Crédit Agricole Italia has placed a new issue of covered bank bonds worth €1 billion on the market, marking the longest-dated transaction of this kind launched since the start of the year. The issue, maturing in 11 years in June 2037, attracted demand more than 1.6 times the offer size thanks to strong participation from international investors. The bond pays a gross annual coupon of 3.50% and offers a yield equal to the mid-swap rate plus 59 basis points, approximately 16 basis points lower than that of a BTP with a similar maturity.

The order book opened yesterday with an initial price indication in the mid-swap area plus 65 basis points, and the final spread was set at 59 basis points thanks to strong demand. The transaction forms part of the group’s €16 billion covered bond programme, secured by Italian residential mortgages, and is expected to receive an Aa2 rating from Moody’s. The transaction was managed by Crédit Agricole Corporate and Investment Bank as Global Coordinator, with Crédit Agricole Corporate and Investment Bank (B&D), BBVA, Erste Group, Mediobanca, Raiffeisen Bank International and Santander acting as joint bookrunners.

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