RCI Banque Begins Pre-Stabilisation for Upcoming EUR Bonds

RCI Banque Launches Pre-Stabilisation for EUR Bond Issuance

RCI Banque S.A. is taking significant steps in the bond market with the initiation of a pre-stabilisation period, aimed at its forthcoming issuance of euro-denominated bonds. This period marks a crucial stage in bolstering investor confidence as the company prepares for securities expected to mature on January 17, 2028. Esteemed investor Natixis has been designated as the Stabilisation Coordinator to oversee this process, which includes a group of Stabilisation Managers from Crédit Agricole CIB, CIC, SMBC, and Natixis itself.

Understanding Pre-Stabilisation and Its Importance

This pre-stabilisation period is set to commence immediately, lasting up to 30 days following the proposed issuance date. During this timeframe, the Stabilisation Managers hold the authority to execute transactions aimed at reinforcing the market price of the securities, attempting to maintain it above natural market levels. However, it is important to note that there are no guarantees that these stabilization measures will take place, as they can be concluded at any moment in response to market conditions.

Initial Pricing Strategy and Expected Outcomes

The initial pricing discussion for this bond offering is positioned around MS+155/160 basis points. Stakeholders should be aware that all stabilization activities will be executed in strict compliance with prevailing legal frameworks and regulations, ensuring transparency and adherence to market protocols.

Trading and Market Availability

The bonds will be traded over the counter (OTC), with the specific trading venues yet to be finalized. This announcement serves primarily as a notification of the pre-stabilisation actions and does not equate to an offer for underwriting or purchasing the securities. Importantly, this offer is directed towards professional investors and high net-worth individuals, aligning with regulations applicable in various jurisdictions.

Legal Restrictions and Regulatory Compliance

The securities have not been registered under the United States Securities Act of 1933 and, therefore, will not be available for public sale in the United States without proper registration or an exemption from registration statutes. This ensures that these financial instruments are not introduced to the American market without full regulatory compliance.

Conclusion and Company Overview

In summary, the pre-stabilisation period initiated by RCI Banque is a pivotal strategy as it aims to enhance the market attractiveness of its euro-denominated bond issuance. This proactive approach is designed to bolster investor confidence while navigating the complexities of the financial market. RCI Banque continues to exemplify a commitment to stringent regulatory standards and serves as an engaging player in the financing landscape.

Frequently Asked Questions

What is the purpose of the pre-stabilisation period?

The pre-stabilisation period allows RCI Banque to maintain or enhance the market price of its bonds during their initial trading phase.

How long will the pre-stabilisation last?

The pre-stabilisation period is expected to last no longer than 30 days following the bond issuance date.

Who is responsible for stabilisation?

Natixis serves as the Stabilisation Coordinator, managing actions conducted by Stabilisation Managers including Crédit Agricole CIB, CIC, and SMBC.

What are the initial pricing expectations?

The initial pricing for the bond offering is anticipated to be in the area of MS+155/160 basis points.

Where will the bonds be traded?

The bonds will be traded over the counter (OTC), with specific trading venues to be confirmed later.

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