April 30, 2024 09:33 GMT
CMARK Tier 2 Issue: We See FV At MS+175bp Area
CREDIT SUPPLY
Credit Mutuel Arkea (CMARK; Baa1/A-) is raising Tier 2 11NC6 debt with IPT at MS+220bp area. We see fair value at MS+175bp area.
- CMARK is coming to market with EUR500m (WNG) 11NC6 Tier 2 subordinated debt issue, with expected ratings Baa1/A-.
- CMARK’s Tier 2 curve is consistently wide of BFCM’s and we’ve also plotted CredAg (ACAFP) on the attached graphic to complete the set of similarly-rated French peers. BPCE is one notch weaker (Baa2) but, at the 7Y workout point, it trades in line with at least two of those peers.
- We see fair value at MS+175bp area, assuming some NIP for investors to move it at least in line with BPCE’s curve.
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