My Money Bank successfully launches its covered bond program with a 7-year EUR 500 million inaugural issuance

24 October 2018
My Money Bank successfully launches its covered bond program with a 7-year EUR 500 million inaugural issuance

MMB SCF priced today its inaugural EUR 500 million 7-year (soft bullet) covered bond transaction.  The yield of the bonds, which are rated AAA(p) by Standard & Poors, is 0.85% (mid-swap + 21 basis points).

 

With this transaction, My Money Bank continues to demonstrate its ability to grow and diversify its investors base. The transaction gathered interests from around 40 international investors (including banks, asset managers, insurers, pension funds, central banks) for a total amount of EUR 590 million. The books were pretty diversified with investors from Germany and Austria (37%), France (21%), the UK (15%), the Nordics (13%) and Benelux (8%).

 

MMB SCF, a wholly owned subsidiary of My Money Bank SA, is the covered bond issuer of the group and is entirely compliant with the French legal framework establishing Sociétés de Crédit Foncier. It received the approval of the French regulator (Autorité de Contrôle et de Résolution) and from the European Central Bank in August 2018. Following the establishment of this SCF and this successful inaugural issuance, My Money Bank builds the foundations for a competitive, sustainable and recurring funding tool to support the growth of its core refinancing mortgage franchise in Mainland France as well as to raise longer term funding.

 

The covered bonds issued by MMB SCF (obligations foncières) are backed by a portfolio of refinancing mortgage loans granted by My Money Bank to French obligors in the context of its refinancing mortgage business. The bonds are listed in Euronext Paris and are fully CRD4 and UCITS compliant.