The first 15-year-maturity transaction since June 2009
Compagnie de Financement Foncier issued on June 15, 2010 a new Obligation foncière amounting to €600 million. It is the longest transaction observed on the covered bond market since the start of the year, and the first 15-year-maturity transaction since June 2009.
Despite the volatile condition of the markets, many investors found this transaction really attractive thanks to Compagnie de Financement Foncier’s signature and as the rate of return was slightly higher than 4% where it is exceptionally low everywhere else.
Within a few hours, the book order over passed €750 million. The transaction was launched at €600 million at 75 bps over mid-swaps, the initial size for that transaction being €500 million.
Investors’ very strong appetence
Insurance companies were the most represented in the book order and got 59% of the allocations. The asset managers and banks invested respectively 24% and 12% of the total transaction. The geographic breakdown shows that most of the investors were French and German ones, both of them representing 93% of the allocations in total, the remaining part being dispatched between Swiss and Scandinavian ones.
