MMB SCF will next Tuesday start a roadshow ahead of a planned long-dated euro benchmark, aiming to improve investor familiarity with the credit following a stuttering entry into the covered bond market in autumn last year.

The French covered bond issuer of My Money Bank (MMB) announced the mandate this (Wednesday) morning for a European roadshow starting on Tuesday (3 September), after which a euro benchmark obligations foncières soft bullet long tenor is expected to follow.

ABN Amro, BNP Paribas, Crédit Agricole, DZ and NordLB have been named as joint lead managers for the transaction, which is expected to be rated AAA by S&P.

The roadshow comes around a year after the French issuer on 27 September postponed a EUR500m no-grow seven year debut, when the leads decided to pull the trade after a final book update of EUR400m, excluding joint lead manager and issuer interest, saying investors needed more time to prepare for the debut.

Some four weeks later in October, the issuer returned to the market with the EUR500m no-grow seven year issue after further feedback, and concluded the debut on the back of a modestly oversubscribed book at a wider spread.

A syndicate banker at one of the leads on the planned new issue said that although the issuer’s debut proved to be an “uphill battle”, MMB SCF is on its way to becoming a regular player in the market.

“We are optimistic that this time around they’ll find it easier to get a well-received transaction out of the door,” he said. “They’ll be on the road next week to further broaden their name recognition, and this, combined with a hopefully benign overall environment, will help to make this deal work properly.”

A syndicate banker at another of the leads said the deal it is unlikely to be launched until at least the week after the ECBC/Euromoney events in Munich on 11 and 12 September.

Photo: MMB/LinkedIn