France

Compagnie de Financement Foncier (CFF) has mandated Calyon, HSBC and Natixis for its benchmark sized obligation foncière to be launched in the near future. Lead managers are believed to be keeping their options open on the maturity of the deal.

The Banque Populaire group has just finished the roadshow for its first covered bond, but Alain David, CFO of the group in Paris, told The Cover today (Tuesday) that the issuer is in no hurry to come to market, particularly given the sharp deterioration in sentiment this week. He also denied that the group’s issuance, outside the obligation foncières framework, was a structured covered bond.

Dexia Municipal Agency’s Eu1.5bn three year obligations foncières issue was priced yesterday (Wednesday) at 3bp through mid-swaps after the swiftly executed deal attracted more than Eu2.2bn of demand by 2pm CET. Market participants said yesterday that the French issuers’ ability to execute quickly was thanks to the attractive pricing level versus recent German and other French supply.

Calyon, Credit Suisse and Dresdner Kleinwort opened books on a three year obligations foncières issue for Dexia Municipal Agency this (Wednesday) morning and were quickly able to generate Eu1.8bn of orders at price guidance of 3bp through mid-swaps. The books have been closed, but despite market participants viewing the pricing as attractive, the spread has been fixed in the middle of guidance.

Compagnie de Financement Foncier priced its Eu1bn seven year obligations foncières issue in the middle of mid-swaps plus 3bp guidance this (Thursday) morning, in the face of the weaker tone this week and also the number of deals it has issued since September.

Compagnie de Financement Foncier opened books on a seven year benchmark this (Wednesday) morning at guidance of 3bp over mid-swaps, the same level at which Dexia Municipal Agency priced a Eu1.5bn 10 year obligations foncières issue only last week.

The sustainability of France’s obligations foncières regime is being questioned in light of Banque Fédérale des Banques Populaires’s announcement that it is setting up a Eu25bn structured covered bond programme. Mutual groups such as Crédit Agricole and Caisse Nationale des Caisses d’Epargne are also said to be considering shunning the legislative framework, meaning that obligations foncières issuers could soon be in the minority in France.

Banque Fédérale des Banques Populaires has mandated Natixis to arrange a Eu25bn covered bond programme to refinance prime home loans originated by the 20 members of the group.

Dexia Municipal Agency this (Wednesday) morning priced its Eu1.5bn 10 year obligation foncières at 3bp over mid-swaps. The bond, due 13 November 2017, is only the second 10 year to be issued since the liquidity and credit crises.

Dexia Municipal Agency has built a book of Eu2.8bn for its 10 year obligation foncières issue launched this morning and pricing will be fixed at 3bp over mid-swaps and the size increased to Eu1.5bn.

CIF Euromortgage priced its Eu1.25bn April 2011 issue at 3bp through mid-swaps this morning after building a Eu2.8bn book at minus 2bp guidance yesterday (Monday) morning. But although investors were enthusiastic about the new issue, they were more demanding than ever in their credit-work and on the choice of leads.

CIF Euromortgage quickly turned around a Eu1.25bn April 2011 obligations foncières issue this (Monday) morning and price the deal at 3bp through mid-swaps, the tightest level achieved on any jumbo since the market was re-opened.