DEAL: Credit Agricole’s senior non-preferred first

Author: Tom Young | Published: 14 Dec 2016

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...



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