France

After a week in which the variety of French structures was highlighted, The Cover spoke to Véronique Hugues, head of long term funding at Dexia Municipal Agency, about what the country’s issuers have in common and what differentiates them.

Société Générale’s debut obligations foncières issue is set to be priced at the low end of expectations in terms of size and price early this (Friday) afternoon. But while market participants cited doubts over the structure as an impediment to the deal’s acceptance, one banker involved said that the pricing vindicated SG’s strategy.

Crédit Mutuel-CIC could breach the Eu1bn threshold that has proved a sticking point for many recent deals with its new two year covered bond priced yesterday (Thursday), despite coming in the midst of other French supply

Dexia Municipal Agency priced a new Eu1.25bn three year obligations foncières (OF) issue yesterday afternoon, enjoying strong interest from eastern European central banks and Asia.

Crédit Mutuel-CIC (CM-CIC) continued the flurry of French issuance ahead of Société Générale’s debut, with a new Eu1.5bn two year structured covered bond set to price this afternoon. The deal demonstrates that it is not just the country’s obligations foncières that are in demand, although one banker outside the deal queried the pricing.

Société Générale has opened the books on its debut five year public sector obligations foncières that is due to be priced tomorrow (Friday).

Dexia Municipal Agency has closed the books on a Eu1.25bn three year obligations foncières issue after generating Eu1.65bn of orders this (Wednesday) morning. And the next French issue could hit the market soon.

Société Générale could be launching its debut public sector obligations foncières in the coming days, having mandated HSBC, SG and UniCredit as leads for the benchmark five year issue. Further obligations foncières supply is also rumoured in the three year maturity.

BNP Paribas priced a new Eu1.5bn five year covered bond yesterday (Wednesday) afternoon after the leads decided that the strength of the order book would allow them to price a deal above the Eu1bn level that several other issuers have recently been restricted to. Bankers are now looking forward to what could be achieved next week.

BNP Paribas has decided to take the plunge into the primary market where Caisse de Refinancement de l’Habitat proved unwilling, opening books on a new structured covered bond this (Wednesday) morning.

Dexia Kommunalbank’s decision to test the long end of the market proved correct when it was able to price the first 10 year jumbo Pfandbrief in over a year yesterday (Thursday). The Cover spoke to the issuer about its bold move.

Dexia Kommunalbank is this (Wednesday) afternoon expected to launch the first 10 year covered bond since Caisse de Refinancement de l’Habitat at end of February, having mandated Deutsche Bank, Dresdner Kleinwort, DZ Bank and Landesbank Baden-Württemberg for the new issue.