"Redbridge provided us with a complete solution to access the NEU CP market. Their support has been instrumental in running the entire process and obtaining an optimal set-up for an additional liquidity instrument in our funding portfolio. "
ENGAGEMENT OVERVIEW
- Implementation of a rated Inaugural Negotiable European Commercial Paper (NEU CP) of €500 million
OBJECTIVES
- Diversify AXPO’s financing base
- Access new investors
- Take advantage of the NEU CP market’s attractive conditions;
- Benefit from an additional and easy-to-use short-term financing tool
RESULTS
- Launch of a €500m NEU CP program with five dealers (AUREL BGC, BNP PARIBAS, BRED, CACIB and NATIXIS) and one paying agent (NATIXIS IPA)
- The program benefitted from strong support from the dealers at the inaugural issuances through trading lines made available by the 4 banks
- First day of emission resulted in a successful issuance of €120m at competitive prices
METHODOLOGY
- Management of all aspects of the process until the inaugural issues
- Approval process of the information memorandum with the French Central Bank
- Management of the request for proposal in order to select the dealers and paying agent
- Coordinating negotiations of dealers & paying agents agreements
- Drafting of the sales credit memo to ensure market adherence to the program
- Advice to position the initial coupons at the right level
REDBRIDGE’S ADDED VALUE
- Deep understanding of the NEU CP market and its key stakeholders
- Coordination of the entire project
- Drafting of the dedicated info memo and management of the discussions with the French Central Bank
- Support during the process of selecting the dealers and paying agent
- Co-facilitation of meetings with banks/brokers and the French Central Bank
- Preparation of agent contracts in collaboration with AXPO’s internal legal advisor as well as external legal advisory (Herbert Smith Freehills)
- Recommendations on inaugural pricing and additional issuances