BFCM leans on strength of relationships to support Kangaroo return

Deal source say demand for Banque Fédérative du Crédit Mutuel’s return to the Kangaroo market was supported by the issuer’s disciplined investor relations approach and tailored deal structure. In particular, engagement with Asian investors facilitated a satisfactory outcome.

Sophie He  Senior Staff Writer KANGANEWS

Source: Mizuho Securities 19 June 2025

Source: Mizuho Securities 19 June 2025

BFCM deal details

Issuer: Banque Fédérative du Crédit Mutuel
Issuer rating: A+/A1/AA-
Pricing date: 18 June 2025
Maturity dates: 6 January 2031
Format: senior-preferred Kangaroo bond
Volume: A$500 million (US$325 million)
Book volume at pricing: “more than A$900 million”
Margin: 140bp/swap
Indicative margin: 140-145bp/swap
Geographic distribution: see chart 1
Distribution by investor type: see chart 2
Lead managers: Mizuho Securities, National Australia Bank, RBC Capital Markets

“BFCM has worked hard to build relationships in the region, and that effort paid off. We fully expected strong demand from Asian accounts and that is exactly what we saw. BFCM and the syndicate team have spent years building strong investor relationships, which allowed us to be selective in allocations – focusing on high-quality accounts. The outcome speaks for itself and the bonds have performed well in the secondary market.”

GERARD PERRIGNON MANAGING DIRECTOR AND HEAD OF APAC FIG DEBT CAPITAL MARKETS RBC CAPITAL MARKETS

“There is demand in the current environment for fixed and floating-rate product, and we were comfortable marketing both. The outcome – a balanced dual-tranche structure – reflects investor appetite and allowed us to tailor the transaction to different segments of the market.”

“This was a long five-year, slightly off-the-run deal, which required some premium over a straight five-year. We guided at 140-145 basis points over swap and priced at 140, which was a solid result. BFCM accepted a modest premium to its euro curve for the diversification benefits the Australian market offers.”

“The Australian dollar market now has the structural capacity to support A$500 million-plus deals for top-tier issuers. This is a major shift from five or six years ago. High-quality banks like BFCM should now view this as a benchmark issuance level.”