Grupo Cajamar places 500 million euros of senior preferred debt02 de Septiembre, 2021
The issue was 3.2 times oversubscribed, with demand in excess of 1.6 billion euros and 140 orders from institutional investors.
Banco de Crédito Social Cooperativo-Grupo Cajamar today placed its first issue of senior preferred debt in a total amount of 500 million euros, maturing in March 2028, with demand reaching 1.6 billion euros. In view of the enthusiastic market reception, the coupon was finally set at 1.75%, lower than originally planned.
With this first issue of senior preferred debt, BCC-Grupo Cajamar has increased its volume of eligible liabilities for MREL purposes and, with a current level of 15.61%, already exceeds by 158 basis points the intermediate target set this year by the Single Resolution Board (SRB), which is to reach an amount of own funds and eligible liabilities equal to 14.03% of the consolidated total risk exposure amount (TREA) by January 2022.
The strong performance and results of Grupo Cooperativo Cajamar have aroused market interest, with the result that the issue elicited an excellent response, with a high volume of orders from more than 140 high-quality institutional accounts. Some 81% of the demand was international, mainly from the United Kingdom (35%). Spanish investors accounted for 19% of the total demand. By investor type, 74% of the orders came from fund managers, 16% from insurance companies and pension funds, 7% from commercial and private banks, and the remaining 3% from other investors.
The bookrunners for this new issue were Barclays, BBVA, BofA Securities and Société Générale, and the legal advisors were Ernst & Young Abogados, S.L.P.