Amount: Eu300m lower tier two capital
Maturity: June 18, 2012
Issue/fixed re-offer price: 99.817
Coupon: three month Euribor plus 50bp
Spread at re-offer: three month Euribor plus 54bp
Call option: at par from 18/06/07
Launched: Tuesday May 28
Joint leads: Natexis Banques Populaires (books), Deutsche Bank, JP Morgan
Natexis BP - We announced the deal on Monday at around noon, and we planned to price it on Friday. Due to huge demand - we had Eu450m on Monday evening - we closed the book at noon on Tuesday, so after only 24 hours.
By that time we had Eu750m in the book, so we were 2-1/2 times oversubscribed. We tightened the spread to 54bp and all the orders stayed in the book. The spread of 54bp over for a 10 year non-call five was in line with comparables like SanPaolo IMI and UniCredito. We then priced the deal on Tuesday with 40% allocations, at 54bp.
There was very good geographical distribution, with only 15% going to France. The UK took 27%, Spain 21%, Italy 20%, Luxembourg 6%, Portugal 4% and Belgium 3%. About two-thirds of the investors were asset managers, 10% insurance companies and the rest banks.
It is a well appreciated and very rare name. It is two years since the last lower tier two from Natexis Banques Populaires, and it was only a small size.
We were recently upgraded by Standard & Poor's from A to A+. It is a retail bank, so it does not have the extra risk associated with a capital markets business.
It is part of Groupe Banques Populaires, which is one of the largest companies in France. So it is very safe and a very good name for investors.