France

BNP Paribas priced its first public sector obligations foncières issue, a Eu1bn five year transaction, at the tight end of guidance yesterday (Tuesday) afternoon, turning its deal around quickly after laying the foundations for the debut a few months ago.

BNP Paribas will this (Tuesday) afternoon price its first public sector obligations foncières issue, a Eu1bn five year deal, at the tight end of guidance. And another French obligations foncières issuer is said to be looking at this part of the curve.

Deutsche Bank has closed books on its debut Pfandbrief issue and will price the seven year issue at 55bp over mid-swaps, the tight end of guidance, while BNP Paribas also looks set to hit a relatively tight level on its first public sector obligations foncières.

The Dexia group took its benchmark covered bond funding since the start of last week to Eu2.5bn yesterday (Tuesday), when Dexia Kommunalbank priced a Eu1bn five year public sector Pfandbrief.

Banques Populaires on Tuesday visited the jumbo market for the third time, raising Eu1bn via a five year mortgage-backed benchmark. The issuer told The Cover that the deal demonstrates that it has access to investors on its own, and not only via Société de Financement de l’Economie Française (SFEF), the entity responsible for issuing debt on behalf of French banks.

Véronique Hugues, global head of long term funding at Dexia, told The Cover that the group was delighted to be back in the covered bond market, after Dexia Municipal Agency on Monday priced its first jumbo since being rescued in September.

Demand for Banques Populaires’ new benchmark yesterday (Tuesday) enabled the deal to be priced at the tight end of guidance, yet left room for the bond to perform today (Wednesday).

Banques Populaires this (Tuesday) morning opened books on a five year benchmark, taking the number of new jumbos to have been launched since the beginning of last week to nine, more than the eight of the first four months of the year.

Dexia Municipal Agency yesterday (Monday) priced a Eu1.5bn 12 year obligations foncières issue at the tight end of guidance, marking a successful return to the benchmark covered bond market after the group’s rescue last September.

Dexia Municipal Agency has opened books on a 12 year obligations foncières issue, its first jumbo covered bond since it had to be rescued by the Belgian, French and Luxembourg governments in September.

BNP Paribas yesterday (Wednesday) afternoon priced the first jumbo covered bond of the year in the three year maturity, a part of the curve where government-guaranteed issuance has so far dominated the market.

Compagnie de Financement Foncier yesterday (Tuesday) achieved broad support for its first jumbo since February 2008, a Eu1.25bn 12 year issue that was the longest dated covered bond benchmark since June 2008. The issuer told The Cover that it was keen to take advantage of the window created by the European Central Bank announcement on Thursday.