PARIS--(BUSINESS WIRE)-- On July 13, 2010, Compagnie de Financement Foncier issued $1.8bn of 144A/RegS 2-year Covered Bonds. Demand ahead of the deal from US key accounts has contributed to the success of the issue, whose size has been increased given investors' enthusiasm.

Compagnie de Financement Foncier has issued a fixed-rate $1.5bn tranche and a floating rate $300m tranche. Compagnie de Financement Foncier has been flexible with the issue format to serve investors' interests as effectively as possible.

The deal has generated an order book of $2bn, from very high quality accounts, 25% of which are central banks and agencies and 41% asset managers.

Confirmed access to key US bond investors with a very good geographic distribution
Four accounts accounted for more than 50% of demand, demonstrating Compagnie de Financement Foncier's access to key US bond investors. The order book remains very well diversified, however, with the participation of 50 other investors in the deal. The geographic distribution was also balanced between North America (62%) and Europe (33%), as well as Asia (3%) and the rest of the world (2%), emphasising the global recognition and appeal of Compagnie de Financement Foncier as an issuer. In terms of investor type, the deal was split between Asset Managers (41%), central banks and agencies (25%), Banks (24%) and insurance companies and pension funds (10%).

The second benchmark issue by Compagnie de Financement Foncier on the 144A market
This deal is Compagnie de Financement Foncier's second benchmark issue on the 144A market and the first following the introduction of its US MTS programme. With these two issues, Compagnie de Financement Foncier has relaunched the 144A covered bond market and is the only French and European issuer active in this segment.
Compagnie de Financement Foncier considers the US investor base to be a key element in its development and intends to remain a regular issuer on this market.

"With this issue, Compagnie de Financement Foncier is showing its innovative capacity, by creating the first US MTS covered bond programme, but also its ability to place large volumes with new investors" explains Paul Dudouit, Crédit Foncier's Deputy Head of Financial Markets.

€11.5bn issued in 2010
On July 14, 2010, the Crédit Foncier group issued €11.5bn in the medium/long-term segment, including $3.8bn in 144 A/ RegS format. It is the most active covered bond issuer on this market in 2010.

La Compagnie de Financement Foncier, a triple AAA-rated issuer
La Compagnie de Financement Foncier, a société de crédit foncier (loan and mortgage bank), whose AAA/Aaa/AAA-rating has been confirmed in accordance with the new post-crisis financial rating standards by the three main rating agencies, is a 100%-subsidiary of Crédit Foncier. It refinances Crédit Foncier's activities by issuing covered bonds. In 2009, it issued €15.8bn of covered bonds. Although it doesn't have bank deposits to finance its loan origination, thanks to its covered bond issues Crédit Foncier's refinancing model has stood up well to the crisis.

CONTACT:

Presse
Bruno Lorthiois
Directeur Relations Presse et Information
Tél. : 01-57-44-81-07
bruno.lorthiois@creditfoncier.fr
or
Kayoum Séraly
Responsable Relations Presse
Tel. : 01-57-44-78-34
kayoum.seraly@creditfoncier.fr

KEYWORDS:   United States  Europe  North America  France

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