Credit Agricole has launched its euro 10-year senior
non-preferred (SNP) instrument, setting the benchmark for a new
breed of bank capital across Europe.
The new category of bank capital has been designed to
implement the European Bank Recovery and Resolution Directive
(BRRD) and to enable French banks to meet the Financial
Stability Board’s (FSB) Total Loss Absorbing
Capacity (TLAC) requirements.
The notes, which have been almost a year in the making were
finally marketed this week, following the EU’s
proposal to introduce a new senior non-preferred rank in
insolvency for long term debt instruments on November 23. The
SNP will rank senior to regulatory capital and subordinated
debt but junior to other unsecured liabilities.
The EU’s proposal builds upon legislation
recently enacted in certain member states including France,
Germany and Italy. As a French bank, Credit
Agricole’s instruments apply to the
country’s Sapin 2 law which was enacted...