France

Caisse de Refinancement de l’Habitat (CRH) has priced its new two year euro jumbo and a tap of its now Eu2.81bn October 2014 deal this afternoon (Wedneday). Pricing on the jumbo was set at 1bp over mid-swaps, against guidance of plus 2bp area.

Caisse de Refinancement de l’Habitat had built a book of over Eu1.5bn for its new two year jumbo today and more than Eu300m for its tap, with pricing expected tomorrow.

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.