Crédit Mutuel Alliance Fédérale in $2.5 Billion Offering

July 13, 2023

Cleary Gottlieb represented Banque Fédérative du Crédit Mutuel (BFCM), the central funding bank of the Crédit Mutuel Alliance Fédérale, in its issuance of $1.4 billion principal amount of 5.896% senior preferred notes due 2026, $350 million principal amount of senior preferred floating rate notes due 2026, and $750 million principal amount of 5.79% senior preferred notes due 2028 under its $10 billion medium-term notes program.

The offering, made in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S, was lead managed by Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, and Wells Fargo Securities LLC. The transaction priced on July 5, 2023, and closed on July 13, 2023.

The Crédit Mutuel Alliance Fédérale is a major French banking group that includes 14 regional federations of local banks operating under the Crédit Mutuel name, the CIC retail banking network, and subsidiaries with activities such as insurance, private banking, private equity, and consumer finance. The group’s business, which traces its roots to 1882, is concentrated in retail banking and insurance in France, and also includes financial activities in Germany and other countries. BFCM is owned indirectly by the local banks and raises funding on international markets for the group, as well as acting as holding company for group subsidiaries.