Crédit Agricole S.A. announces redemption of ¥84,200,000,000 Japanese Yen Callable Senior Non-Preferred Bonds issued on June 3, 2021
Crédit Agricole S.A. (the “Issuer”) announced the redemption (the “Redemption”) with effect on July 6, 2026 (the “Redemption Date”) of all of its outstanding ¥84,200,000,000 Japanese Yen Callable Senior Non Preferred Bonds – issued on June 3, 2021 (ISIN: JP525022AM69) (the “Bonds”) pursuant to Condition 7(4) (Redemption at the option of the Issuer) of the Conditions of the Bonds (the “Conditions of the Bonds”), at a price equal to 100% of the principal amount together with interest accrued to and including the date fixed for redemption (the “Redemption Amount”).
On the Redemption Date, the Redemption Amount shall become due and payable and, in accordance with Condition 6 (4) of the Conditions of the Bonds, unless the Redemption Amount is improperly withheld or refused, each Bond shall cease to bear interest on the Redemption Date. The holders of the Bonds will receive formal notice of the Redemption in accordance with the Conditions of the Bonds.
Update on Crédit Agricole S.A.’s financial situation in Ukraine and Russia
In the current situation, of war in Ukraine and crisis with Russia, Crédit Agricole Group wishes to be transparent regarding its exposure to these two countries. The activities of the Group in Ukraine and Russia are locally operated through two 100% owned subsidiaries: the international retail bank Crédit Agricole Ukraine and the subsidiary of Crédit Agricole CIB in Russia, CACIB AO. In 2021, the activities of CA Ukraine and Crédit Agricole CIB AO represented the following contributions:
Country Net banking income excluding intragroup eliminations (in millions of euros) Average headcount (in FTE) Earnings before tax (in millions of euros) Ukraine 125 2,286 58 Russia 22 168 5
The total exposure (on-shore and off-shore) of Crédit Agricole S.A. in these two countries represents approximately 0.6% of the total commercial lending portfolio as of 31 December 2021.
Ukraine: The commercial lending commitments1 for Ukraine amount to eq. €1.5 billion as of 31 December 2021, i.e. approximately 0.15% of Crédit Agricole S.A.’s commercial lending portfolio. They are almost all booked at the Crédit Agricole Ukraine level and are locally financed. As of 31 December 2021, Crédit Agricole Ukraine is a provider of short term liquidity to Crédit Agricole S.A. The own funds of Credit Agricole Ukraine amount to €226 million as of 31 December 20212.
Russia: The commercial lending commitments3 for Russia as of 31 December 2021 amount to approximately 0.45% of Crédit Agricole S.A.’s commercial lending portfolio4.
The exposures booked in CACIB AO subsidiary represent eq. of €540 million as of 31 of December 2021. All of the credit portfolio is locally refinanced. The own funds of the subsidiary amount to approximately €150 million, of which €80 million in equity and €70 million in subordinated debt. The bulk of assets consists in loans to local corporates, mainly in rubles, 1/3 of which benefits from the parent multinational company’s guarantee5 and of a sovereign exposure corresponding to the excess liquidity of the subsidiary deposited short term at the Central Bank of Russia in the context of its regulatory liquidity and ratio requirements.
The exposures booked outside of CACIB AO, so-called off-shore exposures, can be split into on-balance sheet and off-balance sheet.
– The on-balance share of off-shore exposures amounts to eq. of €2.9 billion6 as of 31 December 2021. This portfolio mainly pertains to fifteen large Russian corporates, notably producers and exporters of commodities, leaders on the market in key economic sectors of their country. The sectorial break down is the following: 52% heavy industry (mining, steel, fertilizers), 36% energy (oil and gas), 6% other transports, 4% shipping, and 2% aerospace. Its quality is strong: 96% of the portfolio is rated investment grade in the internal rating scale as of end December 2021. It is mainly corporate finance for 62%, trade finance for 25% and the rest corresponds to asset financing (aerospace, project, shipping). The portfolio is 56% in USD, 38% in EUR, and 6% in CHF.
– The off-balance sheet share of off-shore exposures amounts to around €1.5 billion as of 31 December 2021. It is mainly corresponding to short-term trade finance activities (in particular documentary credit and financial guarantees), and, to a lesser extent, to confirmed un-drawn credit facilities.
The variation risk linked to derivative transactions is limited and amounts to €60 million as of 31 December 2021.
Finally, there has been no new financing granted to Russia counterparties since the beginning of the conflict.
All in, these exposures, which are of a limited size and of good quality, are under a close monitoring.
The evaluation of the situation has no consequences upon the distribution of the 2021 Credit Agricole S.A dividend that will be submitted to the Shareholders Meeting of 24 March 2022. As a reminder, Credit Agricole Group’s solvency ratio amounts to 17.5% and that of Crédit Agricole S.A. amounts to 11.9% as of 31 December 2021 (CET1 capital levels respectively amount to €102.7 billion and €44.9 billion).
1 On and off-balance sheet, excluding sovereign debt exposure on the balance sheet of Crédit Agricole Ukraine, which amounts to €0.3 billion as of 31 December 2021.
2 Out of which eq. of €201 million of equity and eq. of €25 million of subordinated debt, proforma of the dividend distribution amounting to €16 million and paid on 23 February 2022.
3 On and off-balance sheet, no exposure to Russia sovereign debt as of 31 December 2021
4 Excluding Indosuez Wealth Management Russian exposures, that currently represent around €250 million.
5 Covering political Russian risk
6 Drawn share of the credit facilities, net of Export Credit Agency guarantees, excluding variation risk
General meeting: Publication of the notice of meeting and opening of the vote
Crédit Agricole S.A. would like to inform its shareholders that the notice of meeting for the Combined General Meeting to be held at 9.30 am on 12 May in Paris, France, without shareholders being physically present, is available on the company’s website. The Meeting will be broadcast live online via the section relating to the General Meeting.
The advance online voting period is now open and will run until 3 pm (Paris time) on 11 May 2021. Postal voting will be available until 9 May 2021, which is the last day that paper voting forms will be accepted. Given the current health situation, we invite shareholders to exercise their rights in advance by voting or granting proxy to the Chairman of the Meeting or a third party.
All legal documentation related to the General Meeting is available on Crédit Agricole S.A.’s website in accordance with the procedures and within the deadlines set out in the applicable regulatory provisions (in particular French Order No. 2020-321 of 25 March 2020, of which the period of application was extended by French Decree No. 2021-255 of 9 March 2021).
Crédit Agricole S.A. invites its shareholders to regularly check the section relating to the General Meeting on the company website www.credit-agricole.com.
Crédit Agricole S.A. successfully priced its offering of EUR 750m Undated Deeply Subordinated Additional Tier 1 Fixed Rate Resettable Notes
On 7 October 2020, Crédit Agricole S.A. took advantage of favourable market conditions to launch its second issuance of AT1 notes denominated in EUR (the “Notes”), its first EUR AT1 notes having been issued in April 2014. The new Notes were issued to maintain the Crédit Agricole Group’s high flexibility in the management of its Tier 1 capital.
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.
The General Meeting of Crédit Agricole S.A. will be held on 13 May 2020 without the physical presence of its shareholders
Following its audio conference meeting on 26 March 2020, the Board of Directors of Crédit Agricole S.A., having considered the difficulty of foreseeing the state of the current health crisis in France at 13 May 2020 and having determined, in any case, the unlikelihood of a return to normalcy by this date, it has decided that the General Meeting of 13 May 2020 will be held at 10.30 am without the physical presence of its shareholders.
This decision is based on the provisions of the Order of 25 March 2020 with regard to the holding of General Meetings, made by the government in accordance with the rights conferred to it by the State of Emergency Law of 23 March 2020 in order to combat the Covid-19 epidemic. The notice of the meeting published on 25 March 2020 in the Bulletin des Annonces Légales Obligatoires (BALO), mentions the location and time of the General Meeting as determined by the Board at its meeting on 13 February 2020. A rectified notice will appear in the BALO, which will include the updated information and an explanation of the exceptional methods of shareholder participation in the General Meeting of 13 May 2020.
These methods will be subject to regulatory provisions as well as the recommendations that may be made by the Autorité des Marchés Financiers in the exceptional context of the fight against the Covid-19 epidemic.
Determined to allow shareholders to exercise their rights under the best possible conditions in the present circumstances, Crédit Agricole S.A. will make every effort to ensure that these methods are in accordance with best practices, notably in terms of the use of the Internet to carry out formalities, to express their choices on the resolutions proposed via remote voting and, finally, to ask questions in written form. Crédit Agricole S.A. invites its shareholders to regularly consult the page dedicated to the General Meeting on the company website www.credit-agricole.com, which will be updated to reflect these decisions. It also reminds them that, as every year and independent of the exceptional measures taken in the context of this health crisis, the General Meeting will be broadcast on the company website.
Appointments Credit Agricole S.A.
Yves Perrier, Deputy CEO of Crédit Agricole S.A. and CEO of Amundi, will oversee the Societal Project for Crédit Agricole S.A., with the aim of deploying the programme to all entities of Crédit Agricole Group. In this role, he will support Dominique Lefebvre, Chairman of Crédit Agricole S.A. and the Fédération Nationale du Crédit Agricole.
The Societal Project, one of three main commitments of the Crédit Agricole Group Project, aims to: Continue the Group’s commitment to inclusiveness; Make green finance a driver of growth for the Group. Philippe Dumont has been appointed Deputy CEO of Crédit Agricole S.A. in charge of Insurance, CEO of Crédit Agricole Assurances and CEO of Predica. He succeeds Frédéric Thomas, who is taking his retirement. These appointments will take effect on 1 January 2020. —————— Yves Perrier biography
After 10 years’ experience in audit and advisory services, Yves Perrier joined Societe Generale in 1987. In September 1999, Yves Perrier joined Crédit Lyonnais when the bank was becoming privatised. A member of the Executive Committee, he supervised the Finance, Risk and General Inspection functions. In late 2002, he oversaw the financial transaction that concluded Crédit Lyonnais’ merger with Crédit Agricole. A member of the Executive Committee of Crédit Agricole Group S.A. since June 2003, he is both Group Head of Risk and Deputy CEO of the CIB business line, in charge of support functions. On 1 May 2004, he was appointed Deputy CEO of Calyon, in charge of the Structured Finance and Brokerage and Risk business lines and support functions. In 2005, he also took charge of supervising the International Network. In September 2007, Yves Perrier was named Chairman and CEO of Crédit Agricole Asset Management, which became Amundi in 2010. He was appointed CEO of Amundi on 1 January 2010.Yves Perrier is a graduate of ESSEC business school and a chartered accountant. Philippe Dumont biography
Philippe Dumont started his career in administration and ministerial cabinets. Philippe Dumont joined Crédit Agricole Group in 1997 as Head of the Economics, Finance and Taxation Department of the Fédération Nationale du Crédit Agricole. He became its Deputy CEO in 2004. He was named Inspector General, Head of Internal Control and member of the Senior Management Committee of Crédit Lyonnais in 2004. In 2006, he was appointed Inspector General of Crédit Agricole Group. In July 2009, Philippe Dumont became CEO of Crédit Agricole Consumer Finance. In September 2015, he also became Deputy CEO of Crédit Agricole S.A. in charge of the Specialised Financial Services division which covers consumer lending, leasing and factoring. Philippe Dumont holds degrees in Rural Engineering, Water and Forestry and Agricultural Engineering from the Institut National Agronomique – Paris Grignon, as well as a doctorate degree in Engineering and Economics.
Moody’s upgrades the long term credit ratings of Crédit Agricole Regional banks, Crédit Agricole S.A. and Crédit Agricole CIB
On 19 September 2019, the rating agency Moody’s announced the one-notch upgrade from A1 to Aa3 of the long term credit rating of Credit Agricole Group’s following entities: Crédit Agricole Regional banks, Crédit Agricole S.A. and Crédit Agricole CIB.
Credit ratings of long-term debt instruments issued by these entities are also impacted by a one-notch upgrade. The outlook changes from positive to stable and the short-term rating remains unchanged at P-1.
Moody’s justifies the upgrade by the constant improvement of the capitalisation level of the Group, of its asset quality and of the diversification of revenue sources, which enables Crédit Agricole Group to maintain its profitability in a low interest rate environment. This is an acknowledgment of the strength of the Group’s universal customer-focused retail model and its capacity to reach its strategic targets.
The upgrade changes the rating of senior preferred debt instruments issued by Crédit Agricole SA to Aa3, the one of senior non-preferred and Tier 2 notes to Baa1, and the one of Additional Tier 1 debt instruments to Baa3. The latter are now rated “investment grade”.
For details about the rationale underlying this rating action, please refer to the press release issued by Moody’s on Thursday 19 September 2019, “Rating Action : Moody’s upgrades Credit agricole S.A’s long term deposit and senior unsecured debt rating to Aa3 from A1, outlook changed to stable”.
As a reminder, the long-term rating of Regional banks, Crédit Agricole S.A. and Crédit Agricole CIB is A+ with S&P and Fitch Ratings since October 2018 and May 2017 respectively.
Financial agenda
8 November 2019 Publication of third quarter 2019 results