Following its inaugural panda bond issuance in December 2019, Crédit Agricole has issued its second 1 billion yuan (US$146.42 million) senior preferred bond with a three-year tenor and a 3.5% fixed rate. Proceeds of the fundraising will be used to finance its wholly-owned banking subsidiary Crédit Agricole CIB (China) Limited in order to support its international client base through financing and capital market transactions, the company said in a statement.
The issuance saw strong demand from Chinese and International institutional investors on the Chinese bond market and the Hong Kong Bond Connect exchange. The order book was 1.64 times oversubscribed.
Credit Agricole’s panda bonds have obtained a domestic rating of AAA from China Chengxin International Credit Rating.
Says Olivier Belorgey, Crédit Agricole Group head of treasury and funding and Crédit Agricole CIB chief financial officer: “This second issuance demonstrates the strong commitment that Crédit Agricole Group and Crédit Agricole CIB have towards the Chinese market. This successful funding exercise is also a strong testimonial of Chinese investors’ confidence in Crédit Agricole S.A. as an issuer regardless of a volatile international market environment.”
Adds Nicolas Vix, president of Crédit Agricole CIB (China) Limited: “The China franchise has become a major growth engine in Asia-Pacific for the group. After having been the first country affected by the Covid-19 pandemic, China shows a strong recovery on people’s daily lives and business activities. This additional funding will allow the bank to further strengthen its position to support its client’s needs.”
Bank of China acted as the lead bookrunner and lead underwriter of the deal. Along with Crédit Agricole CIB (China) Limited, Agricultural Bank of China, China Construction Bank, Industrial and Commercial Bank of China, CITIC Securities, China International Capital Corporation Limited and China Merchants Bank were the joint bookrunners and joint lead underwriters.