On September 3rd, Compagnie de Financement Foncier (Ticker Bloomberg : CFF) launched a 5.5-year benchmark offering.
CFF’s order book grew steadily, reaching nearly €1 billion at 11:30 am. This allowed CFF to set the issue size at €750 million and the spread at MS+47 bps, marking a tightening compared to the launch.
The order book subsequently continued to grow, ultimately reaching €1.15 billion, representing an oversubscription ratio of 1.5 times, demonstrating investor interest in the current environment.
We observed very good participation from central banks and official institutions, with notable subscriptions.Banks accounted for approximately one-third of the orders. A few pension funds and insurance companies also participated.
The final order book included more than 55 distinct investors, with a strong participation from French investors (approximately 25% of orders), followed by German investors (approximately 21%).
CFF thus demonstrated its ability to navigate a complex market, a testament to its leadership in the run-up to the September 8 confidence vote, which could have temporarily closed the market to French issuers.
