CADES launches with success a €2.5 billion benshmark with a 10-year maturity

PRESS RELEASE

The Caisse d’Amortissement de la Dette Sociale (CADES) priced on Monday a new Euro benchmark in the 10-year maturity. This is the first Euro benchmark issue from CADESthis year.

Execution highlights

The € 2.5bn issue has a final maturity of 25 April 2021, pays an annual coupon of 3.375% and has an issue price of 99.763% to give a spread of 30 basis points over the interpolated mid-swap rate, equivalent to 17.05 basis points over the OATdue April 2021 or 63.5 basis points over the Bund 3% due July 2020.

This transaction effectively re-opens the Euro public sector agency market being the first SSA (Sovereign, Supranational, Agency) benchmark transaction since KfW’s 3-year and Rentenbank’s 5-year benchmarks, two weeks ago. At € 2.5bn, this is also the largest 10-year Agency / Supranational Euro benchmark transaction since January.

Given highly volatile market conditions CADESengaged in an intra-day execution strategy which saw fantastic momentum from the outset. Books were opened at 10amLondontime with a guidance of +30 / +32 basis points over mid-swaps, and within one hour had accumulated over € 2 bn of orders. Books were made subject at 2.30pmLondontime and the transaction was priced at the tight end of the range shortly thereafter.

Lead Managers for the transaction were Barclays Capital, BNPParibas, Credit Suisse and Natixis.

A strong support from CADES’ domestic investor base

The transaction demonstrated a high level of investor penetration in CADES’s domestic investor base. Of the 44 orders, 19 were coming from French investors. By region, the book was split between France(68%), United Kingdom(18%), Netherlands(4%), Germany(3%), US (3%) and others (4%).

The transaction saw strong demand from Insurance Companies (26%), Financial Institutions (including Retail) (43%), Asset Managers (27%), Central Banks (2%) and Corporates (2%).

CADES: A BENCHMARK ISSUER IN THE FINANCIAL MARKETS

Created in 1996, CADES is the administrative public agency, placed directly under the French authority of the French State, in charge of managing and amortizing the French social debt.

It has been awarded the highest ratings by the principal international rating agencies (AAA/A1+, Aaa/P1, AAA/F1+), and a 0% Basel ratio weighting

CADES
LIGHTEN THE DEBT – BRIGHTEN THE FUTURE

CADES
15, rue Marsollier - 75002 PARIS
Tel : 01 55 78 58 00

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76-78 rue Saint Lazare – 75009 PARIS
Tel : 01 56 88 11 28

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