Natixis Structured Issuance (NSI), the wholly-owned, indirect subsidiary of Natixis whose principal activity is the issuance of debt financial instruments, has reported an aggregate outstanding value of notes, bonds and certificates of €5.4bn as of December 31, 2017, up 23% from the €4.4bn registered at the end of the previous year.
The outstanding of notes (zero coupon, fixed interest, floating rate, or structured notes) issued under the company's English law debt issuance programme stood at an aggregate nominal amount of €3.6bn at the end of December (FY2016: €2.9bn); bonds under its French law bonds programme in an aggregate nominal amount of €1.6bn (FY2016: €1.2bn); certificates under its English language certificate programme in an aggregate nominal amount of €97.6m; warrants under its warrant programme in an aggregate premium amount of €62.7m (FY2016: €85m); and certificates under the German language certificate programme in an aggregate nominal amount of €109.5m (FY2016: €93m).
At the end of 2017, NSI's activities have reached a steady state, the company said in its annual accounts for the year. 'The trend of activity remains stable, the estimated outstanding amount for the second half of 2018 should get closer to €6bn if market conditions are favourable.'
The maturity dates of the outstanding notes and certificates, as at December 31, 2017, range from January 1, 2018 to February 22, 2047. The market risk is fully hedged with Natixis SA except for a small interest margin and an upfront fee which are used to cover the managing and operating costs of the vehicle. The credit risk is limited to Natixis SA, the only counterparty and guarantor of the company.
Natixis was the issuing party behind 313 structured products (across eight different jurisdictions) in 2017, an increase of more than 90% from the 164 products issued in 2016, according to SRP data. In France, 203 structures were issued by the bank which were mainly distributed via private banks and independent financial advisors, among other, Derivatives Capital, Equitim, Hedios Vie, Kepler Cheuvreux Solutions and Zenith Capital.
Natixis was also behind the best-selling French product for 2017 which came in the shape of Ambition COP Avril 2027 from Caisse D'Epargne. The 10-year medium-term note was linked to the Euronext Climate Orientation Priority 50 Ewer Index (COP 50) and sold €385.4m during the subscription period.
Another 71 products were marketed in the UK via Meteor Asset Management, Mariana Capital Markets, Market Securities and Reyker, respectively, while 15 products - each linked to a basket of shares - were issued by NSI in Italy.
In Belgium the bank collaborated with Crelan, Deutsche Bank and VDK while in Japan Natixis provided the bond for products from Daiwa, Mitsubishi UFJ Morgan Stanley, Mizuho and SMBC Nikko Securities. Four products were launched in Sweden via Exceed (three) and Mangold (one) and single issues were seen in Ireland and Mauritius.
Natixis Structured Issuance was incorporated on November 29, 2013 under the law of the Luxembourg Companies Act. The company's corporate objectives are to obtain funding by the issue of bonds, notes, warrants, certificates or other financial instruments of any term or duration and in any currency, including under one or more issue programmes or by means of standalone issuances.
Since its inception in 2013, five NSI issuance programmes have been approved by the CSSF (Commission de Surveillance du Secteur Financier, the Luxembourg regulator) while additional issuance programmes have been launched and authorised by regulators outside Luxembourg (e.g. France).
Click the link to view the full NSI 2017 annual accounts.
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