Crédit Agricole stuns market with $25bn book for debut AT1

By Will Caiger-Smith
16 Jan 2014

Crédit Agricole pulled together the biggest ever order book for an additional tier one trade on Wednesday, finding a whopping $25bn of demand for its $1.75bn perpetual non-call 10 year debut in the deeply subordinated asset class. If further evidence of the grab for yield was needed, this was it — even though the leads themselves admitted that the deal was priced way through fair value.

After conducting a global roadshow since last Wednesday, lead managers Barclays, Crédit Agricole, Credit Suisse, Goldman Sachs, JP Morgan and UniCredit opened books during Wednesday’s Asian session with initial pricing thoughts of 8.125%-8.375%. The bond was eventually priced at 7.875%.

One of the leads told EuroWeek Bank Finance ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial