Lesser spotted CAA dips in for tier two
Crédit Agricole Assurances (CAA) added to the subordinated deal flow in the FIG bond market on Tuesday by launching a tier two bond. The French insurer benefitted from the rarity of its appearances in primary markets, and the large deal size meant that although the issuer paid some premium, it "did not leave much value on the table", according to a lead manager.
CAA targeted a 10 year tier two deal and hired Crédit Agricole as sole bookrunner. It went out with price thoughts of 250bp area over mid-swaps.
To determine pricing, lead managers looked at bonds from the issuer and its peers, such as CNP Assurances and La Mondiale.CNP Assurances' €500m ...