Compagnie de Financement Foncier issued a 10-year USD 1bn benchmark in EuroDollar format.
The USD 1bn deal is the first benchmark issued by Compagnie de Financement Foncier in US dollars on a 10-year maturity. Compagnie de Financement Foncier chose the maturity to respond to the very strong investor’s interest on this part of the curve observed in this last months amid a rising interest rate environment.
Following the US Treasuries market movements observed Friday June 2nd after US employment figures were released and the absence of major economic news, the week of June 4th offered the ideal conditions in which to execute this transaction.
The order book opened late on Wednesday morning. The transaction was extremely well received by the market and the majority of the orders were placed in the first few hours. At the end of the afternoon, the order book was oversubscribed.
Complementary demand from Asian accounts permitted the book to reach the benchmark size overnight.
This strategic transaction was a complete success showing the growing investor’s interest in Compagnie de Financement Foncier US dollar benchmarks and confirms the strategic issuing policy of the company focused on responding quickly to the investor’s demand.
