Grupo Crédito Agrícola hereby informs that it has completed today, through Caixa Central de Crédito Agrícola Mútuo, C.R.L., its first issuance of debt in the international market, in this case of senior preferred debt linked to Social Sustainability.
The issuance, in the amount of 300 million euros, has a 5 years period with an option for early redemption at the end of year 4 and an issue price of 99.906% with annual coupon of 2.50% until the Call Date and remunerated at 3M Euribor plus a margin of 260 basis points thereafter. Settlement will take place on 5 November 2021. Moody’s Investor Services has attributed a “Ba2” rating to the issuance.
Following the roadshow which took place on 25 and 26 October, the issuance was carried out with more than 50 institutional investors, mostly asset managers (61%) and banks (31%), with the following geographical breakdown: Portugal (28%), Spain (27%), UK (24%), and others (21%).
This inaugural social senior preferred debt issuance enables Grupo Crédito Agrícola to exceed the intermediate target of the MREL TREA minimum requirement as of 1 January 2022 (19.09%) with a favorable gap of 175 basis points.
BBVA, Credit Agricole, JPMorgan and Unicredit acted as joint bookrunners and joint lead managers, with Morais Leitão, Galvão Teles, Soares da Silva & Associados (PT) and Clifford Chance LLP (UK) acting as legal advisors.
With Cooperative and Sustainability values deeply embedded in the DNA of Grupo Crédito Agrícola, the proceeds of this debt issuance will be used to finance and/or refinance Eligible Social Assets as defined in the Green, Social and Sustainability Bond Framework published on the website: www.creditoagricola.pt/institucional/investor-relations.
The successful completion of this debt issuance reflects the market’s recognition of Grupo Crédito Agrícola’s financial robustness, liquidity and resilience, as well as its commitment to sustainably support the Portuguese economy’s recovery and to foster social and economic development of local communities.