Groupe des Assurances du Crédit Mutuel (GACM) Issues €1 Billion in Bonds

Groupe des Assurances du Crédit Mutuel (GACM) has successfully completed a dual-tranche bond issuance totaling €1 billion. The issuance is split into two parts: one consisting of €500 million Tier 2 subordinated bonds with a 20.5-year maturity and a 10.5-year call option, carrying a fixed interest rate of 5.00% until the reset date. The other half comprises €500 million senior unsecured bonds with a 5-year maturity, bearing interest at a fixed rate of 3.75%.

Moody's is expected to assign a Baa1 rating to the Tier 2 bonds and an A3 rating to the senior bonds. The bonds are set for trading on the Euronext Growth Paris market, with trading commencement scheduled for April 30, 2024. This strategic financial maneuver aims to enhance the capital structure of GACM and its parent company, Crédit Mutuel Group. The offering attracted significant investor interest, indicating strong market confidence in GACM’s credit quality.

Natixis served as the structuring advisor and global coordinator for the transaction, with additional support from CIC, J.P. Morgan, and BNP Paribas as joint bookrunners.