BNP Paribas Fortis Funding (BP2F), the Luxembourg issuance vehicle owned by BNP Paribas Fortis, issued 50 securities worth €629m during 2015, according to the company's latest audited annual accounts. The figure, which includes sales to retail investors in Belgium and Luxembourg, is down €350m compared with the €979 raised from 72 securities sold during 2014. "In 2015, 54% of our EMTN issues were structured products," a spokesperson told SRP.
Sales for index-linked products were €30.7m in 2015, down €46.8m year on year from €77.5m in the previous year while variable coupon notes sold €307.1m between January and December, down from €601.4m, reported BP2F. The report also shows that sales of fixed interest rate notes were €172m (2014: €269m) while the company sold €119.5m worth of floating rate notes (2014: €0.00).
BP2F reported the total balance sheet amounted to €5.2bn in the year ending December 31, 2015, compared to €5.6bn in 2014. The outstanding for variable coupon notes stood at €1.7bn (2014: 1.5bn); while assets for variable redemption index-linked, at €206.6m (2014: €258.2m), credit-linked, at €14.6m (2014: €17.2m) and others, at €74.6m (2014: €81.2m) were each down year-on-year. The outstanding amount for subordinated notes (€936m) and fixed interest rates notes (€1.6bn) was also lower compared to the previous year (2014: €1.2bn and €1.8bn, respectively) but assets for floating rate notes, at €480.5m increased by almost €100m (2014: €381.6m).
SRP data shows that BP2F launched 27 structured notes aimed at the Belgian retail investor during 2015. The notes, which sold €334m during subscription, were predominately linked to equity indices - including Ethical Europe Equity, Ethical Europe Climate Care, Dynamic Deep Value Equity Europe, Global Grey Gold Select 30, Eurostoxx 50, Eurostoxx Select Dividend 30 - and interest rates. Additionally, BNP Paribas Fortis Funding issued another seven structured notes worth €16.7m, which were targeted at private investors.
The company's bestselling product in 2015 was the constant maturity swap (CMS) rate linked BNP Paribas Fortis Funding (LU) Fix to Spread Note 2024, with sales of €30m. The note pays a fixed coupon of 2% per annum during the first five years of investment while the following years the product offers an annual coupon equal to two times the difference between the CMS 10-year rate and the CMS two-year rate, subject to a minimum coupon of 0% and a maximum coupon of 4.50% per annum. The best-selling equity-linked product was the fully capital protected BNP Paribas Fortis Funding (LU) Climate Care Note 2023 (€25m) which participates for 100% in the positive performance of the Ethical Europe Climate Care index, subject to 24-months backend averaging.
To date the company has issued 19 structured notes in 2016. The products, which collected combined sales of €283.3m, included three product linked to the Stoxx Europe 600 Oil & Gas index.
The selling of structured notes and other types of bonds demanded by the retail and private banking divisions of BNP Paribas Fortis in Belgium and BGL BNP Paribas in Luxembourg is a stable element of the funding mix of BP2F, said the company which also proposes tailor made issues (both listed and non-listed) for institutional investors.
BP2F acts as issuer of notes under the multi issuer certificate, note & warrant (C, N & W) umbrella programme with BNP Paribas, BNP Paribas Arbitrage IBV, and BGL BNP Paribas acting also as issuers (on a several basis). The securities issued by the company under the umbrella programme are guaranteed by BNP Paribas Fortis under similar terms as under the EMTN programme.
BP2F was incorporated on September 24, 1986 in Luxembourg as a public limited liability company with the name Genfinance Luxembourg, which was then changed on November 12, 2001 to Fortis Luxembourg Finance and on February 22, 2010 to BNP Paribas Fortis Funding that is today its legal name and commercial name.
Click the link to view the full BNP Paribas Fortis Funding annual report 2015.
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