The City of Paris announces the launch of a bond issue in Swiss francs, for CHF150 million, under its EMTN financing programme.
The operation is being lead managed by BNP Paribas, which has formed a syndicate for the issue, comprising several banks well known on the Swiss franc market.
The City of Paris conducted a bond issue on the euro market in June 2005. Its current return to the Swiss market reflects the strong appetite among international investors for the quality credit of the City of Paris.
The City of Paris enjoys exceptional standing on the Swiss market, illustrated in the rapidity and strength of the placement seen for this issue. The Swiss market is keen on the very highest quality AAA signatures: sovereign issuers and “near-sovereign” frontline local authorities. This is indeed how the City of Paris is perceived, coupled with the evident prestige attached to the capital of France. This perception of excellence is further reinforced by the rare occurrence of this borrower on the bond markets.
This operation will enable the City of Paris both to diversify its financing sources by targeting a specific spread of investors, and to finance itself, after fully hedging the exchange risk, on particularly beneficial financial terms, significantly better than those of a bond directly issued in euros of a similar size and maturity.
BNP Paribas is a leading and historic player on the Swiss franc market. The Group has therefore been able to offer the City of Paris the benefit of its experience on this market together with its capacities for bond issue placement and management.About BNP Paribas Group
BNP Paribas is a European leader in banking and financial services, with a significant and growing presence in the United States and leading positions in Asia.
BNP Paribas enjoys key positions in its three core businesses:
- Corporate and Investment Banking
- Asset Management & Services
BNP Paribas is the leading bank in the euro zone in terms of net income (2004). The Group has one of the largest international banking networks, present in over than 85 countries with close to 100,000 employees, including 67,000 in Europe.www.bnpparibas.com