Crédit Mutuel-CM11 Group’s $2.5 Billion U.S. Bond Offering
July 20, 2017
Cleary Gottlieb represented Banque Fédérative du Crédit Mutuel (BFCM), the central funding bank of the Crédit Mutuel-CM11 Group, in its issuance of four tranches of senior preferred notes under its $10 billion medium-term notes program.
The total principal amount of the offering was $2.5 billion, comprised of $500 million principal amount of senior preferred floating-rate notes due 2020, $400 million principal amount of senior preferred floating-rate notes due 2022, $800 million principal amount of 2.200 percent senior preferred notes due 2020 and $800 million principal amount of 2.700 percent senior preferred notes due 2022.
The offering, made in the United States pursuant to Rule 144A and outside the U.S. pursuant to Regulation S, was lead managed by BNP Paribas Securities Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities LLC. The transaction priced on July 11, 2017, and closed on July 20, 2017.
The Crédit Mutuel-CM11 Group is a major French banking group that includes 11 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, Spain 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.