CADES opens trading of Euronext’s European market

PUBLISHED: Mar 28 2014 @ 14:47 | Comments (0) |

€5 BILLION BENCHMARK ISSUE STRONGLY ENDORSED BY INTERNATIONAL INVESTORS

Euronext, a wholly owned subsidiary of IntercontinentalExchange Group (NYSE:ICE), has congratulated CADES (Caisse d’Amortissement de la Dette Sociale) on its successful €5 billion bond issue on 12 February 2014. A leading international issuer, CADES today celebrated that benchmark by ringing the bell that marks the start of trading in Paris.

CADES’ mission is to fund and redeem the debt accumulated under France’s general Social Security system. It does this using a very wide range of debt securities which it issues in euros and other currencies in response to demand from international investors. The €5 billion issue by CADES was the largest since its creation in 1996, and was part of its medium and long-term financing programme for 2014.

The issue has a final maturity of 25 May 2019, pays a coupon of 1.125% and has a reoffer price of 99.394%. The transaction was executed with +15.0 basis points over mid-swap, equivalent to a +11.3 basis point spread over OAT benchmark 1% 25 May 2019.

Exceptional demand from investors resulted in an order book of over €7 billion in a record time. Placement was distributed to more than 160 investors from around the world, including 49% in Asia, 22% in Germany and Austria, 7% in France, 5% in the United Kingdom, 4% in the Middle East, 1% in Switzerland and 12% in other European countries.

Central banks and official institutions contributed to more than half of the placement (58%), followed by banks and other financial instutitions (20%), fund managers (18%) and insurance companies (4%).

“Euronext is proud to have worked with CADES on this latest very important bond issue—a benchmark that is an additional positive signal on our markets and confirms their lasting return to pre-crisis levels,” said Marc Lefèvre, Euronext’s Head of European Business Development and Client Coverage. “To finance its requirements, the French State relies primarily on securities issued on financial markets, as in this case with CADES. Euronext offers a wide range of solutions that reflect its key role in financing the economy.”

Patrice Ract Madoux, Chairman of CADES Board of Directors, rang the bell marking the start of trading of Euronext’s European market, accompanied by financial and legal advisers and by the Euronext Paris listing team.

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