French bank taps ECB funds

THE EUROPEAN Central Bank’s (ECB) second covered bond purchase programme is underway, with Banque de France making an order in the taps of Credit Mutuel Arkea’s outstanding French Obligations à L’Habitat, according to a syndicate banker.

CM Arkea opened books yesterday morning, tapping a €1.25bn 2.5 per cent June 2015 issue at mid-swaps plus 100 basis points.

A syndicate official said they had been in contact with Banque de France and were certain that the French central bank would partake in the two taps.