Crédit Agricole is set to issue its first public sector covered bond in over three years tomorrow (Wednesday), having this afternoon announced a mandate for a Eu500m 10 year issue.

The last benchmark obligations foncières from Crédit Agricole Public Sector SCF came in May 2013, when it sold a Eu1bn June 2023 issue. The French issuer’s only other outstanding benchmark is a Eu1bn September 2019 OF.

Crédit Agricole announced a mandate this (Tuesday) afternoon for a Eu500m no-grow 10 year OF, with leads ABN Amro, Banca IMI, BBVA, Crédit Agricole and DZ Bank. A syndicate official at one of the leads said the deal could be launched as soon as tomorrow, and said the issuer “had one eye on” an ECB meeting on Thursday.

Crédit Agricole has sold three benchmark covered bonds this year, each through Crédit Agricole Home Loan SFH, which has a more established curve.

Syndicate officials at the leads saw the Crédit Agricole Public Sector SCF June 2023s quoted pre-announcement at minus 14bp, bid. They also cited Crédit Agricole Home Loan SFH March 2023s at minus 14bp, September 2023s at minus 16bp, and July 2025s at minus 14bp, noting that the 2023s of the two Crédit Agricole issuers trade in line.

Only one benchmark French covered bond has been sold in the second half of 2016, a Eu1bn 10 year issue for Compagnie de Financement Foncier on 5 September, after Eu17.35bn of supply in the first half of the year.