The choice of a 3-year maturity allowed Compagnie de Financement Foncier to target an investor base not hit until now and to make this issue a great success.
Indeed, the book order rapidly reached €2.4bn in two and a half hours only with 106 different accounts. The strong interest of the investors allowed Compagnie de Financement Foncier to issue €2bn at +24bp over swap.
The geographic breakdown shows the great part of Germany with 30% of the accounts but also France with 25% of the final distribution.
Central Banks with 34% and banks with 31% represent the majority of orders followed by pension funds with 23%.
With this issue, Compagnie de Financement Foncier shows again its ability to seize market opportunities in a difficult and competitive environment but also the renewed confidence from particularly prestigious international investors.
This is the bigger benchmark Covered Bond issue of 2010 with the greater size on a 3-year maturity since May 2008.
