AXA pays up despite huge ECB backstop

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By Bill Thornhill
19 Mar 2020

AXA Bank successfully issued the first covered bond eligible for the European Central Bank’s newly established €750m Pandemic Emergency Purchase Programme (PEPP) on Thursday. But, despite the ECB’s much increased firepower, the bonds still offered a pick up of around 30bp and the funding would barely been possible without the central bank's support.

AXA Bank issued a €500m 4.5 year covered bond on Thursday at 38bp over mid-swaps from initial guidance of 35bp-40bp with demand of €700m. 

The October 2024 bond offered a substantial pick up to the issuer’s outstanding €750m March 2023 and €750m April 2025, which were respectively indicated at ...

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