Crédit Agricole S.A. successfully priced its offering of EUR 750m Undated Deeply Subordinated Additional Tier 1 Fixed Rate Resettable Notes

The Crédit Agricole Group is one of the best capitalised financial institutions in Europe. The Crédit Agricole Group and Crédit Agricole S.A. Group’s Common Equity Tier 1 (CET1) Capital Ratios were 16.1% and 12.0%, respectively, at 30 June 2020, and distances to the levels that would trigger distribution restrictions stood at 636 basis points and 382 basis points, respectively.

The Notes have no fixed maturity date. They will bear interest at a fixed rate of 4% per annum payable quarterly to (and excluding) 23 June 2028 (the “First Interest Rate Reset Date”), after which the interest rate will be reset every five years (each, a “Subsequent Interest Rate Reset Date”) at the then-prevailing 5-year swap rate plus the initial margin of 437 basis points. Interest payments are subject to cancellation under certain circumstances. The principal amount of the Notes will be written down temporarily if the Crédit Agricole Group’s CET1 Capital Ratio (as defined in the terms and conditions of the Notes) falls, or remains, below 7% or the Crédit Agricole S.A. Group’s CET1 Capital Ratio (as defined in the terms and conditions of the Notes) falls, or remains, below 5.125%. The Notes may be redeemed at the option of the issuer at any time between 23 December 2027 (included) and the First Interest Rate Reset Date (included), and then at any time during each six-month period preceding a Subsequent Interest Rate Reset Date (included), in each case with the prior approval of the regulator and subject to certain conditions specified in the terms and conditions of the Notes.

The Notes were subscribed by institutional investors in Europe and Asia. The offering attracted considerable interest, the order book exceeding EUR 4.25billion at its peak, and counting more than 200 investors at the final coupon level. The success of this issuance attests to the Crédit Agricole Group’s credit quality.