Natixis, the international corporate, investment, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France, has joined the ranks of the Swiss Structured Products Association (SSPA) as new active member and issuer.
Cyril Parmentier, head of sales Switzerland at Natixis, said the SSPA membership is in line with the bank's "strategic dialog" with clients and its "360 vision of their needs, challenges, risks and interests" to build a "long term trusting relationship".
"We harness all our expertise and combine them to design the best banking, financial and insurance solutions - using structured products as innovative investment opportunities with a promising performance potential at reasonable costs," said Parmentier. "Thus our membership of the industry association underscores our long term commitment to the Swiss structured products market and to Switzerland as a financial centre."
Natixis has been rebuilding its equity derivatives and structured products since 2014, but its activity in the global structured retail products market has been marginal despite acting as the bond provider for 13 structured notes sold to international investors in 2015 via its Natixis Structured Products subsidiary, and marketing 42 products across jurisdictions. The French bank has over 240 live products across different markets, of which 145 were issued in its home market. SRP data shows that Natixis sold six structured products in Switzerland between 2008 and 2010, of which one product is still live. Detach Coupon Juillet 2010, a six-year digital/knock out income product linked to the performance of the Eurostoxx50 index, which was also sold in Belgium and France, is set to mature in mid-July.
The French bank which has been rebuilding its global markets division, headed by Luc François, global head of wholesale banking global markets, announced in mid-March plans to reorganise its corporate & investment banking. The planned changes include the creation of a global finance division which will include financing portfolio management, as well as a newly created investment bank for strategic equity transactions, acquisition & strategic finance, capital & rating advisory, equity capital markets and corporate loan structuring.
In Q4 2015, Natixis launched its first dedicated climate index, the NXS Climate Optimum Prospective index, which was developed as a new composite smart beta strategy of low-carbon stocks designed to be used as the underlying of index-linked products; and licensed the S&P 500 Low Volatility Target Beta Index for product development in the US market. The French bank also expanded its UK footprint by joining the Structured Products Association (UKSPA) in November. Natixis is also understood to be working with the FTSE Group to develop the FTSE150, a new equity index designed to be used as underlying of index-linked and structured products.
Earlier this year, the French bank reported robust momentum and revenues in its core investment solutions, asset management and life insurance businesses, where revenues advanced 12% to €7.878bn in 2015. The bank's corporate & investment banking (CIB) revenue growth was primarily fuelled by the performance of the bank's structured financing and equities segments.
Natixis Structured Issuance SA (NSI), a wholly-owned, indirect subsidiary of Natixis, whose principal activity is the issuance of Euro medium-term notes (EMTN), has reported an outstanding of €2.6bn as of December 31, 2015.
At the end of last year, notes under the company's English law debt issuance programme amounted to an aggregate nominal amount of €1.8bn; bonds under its French bonds programme, governed by French law, to €732m; certificates under its English language certificate programme to €0; warrants under its warrant programme in an aggregate premium amount of €78m; and certificates under its German language certificate programme in an aggregate nominal amount of €67m.
At the end of February 2016, NSI's activities reached an outstanding of the equivalent of €3.2bn. "With this business trend remained, the outstanding would reach the target of €4bn before the end of the year 2016," according to NSI.
"With the admission of Natixis, the SSPA is taking a further step in its strategy of broad market support," said SSPA vice-president Philipp Rickenbacher, in a statement. "Thanks to the sustainable expansion of our association, we can represent the interests of the entire industry even more effectively."
Founded in 2006, Natixis provides customised solutions to financial institutions and institutional investors, as well as products and services tailored to the client base of Groupe BPCE's two retail networks focusing on the three core business sections corporate and investment banking; investment solutions & insurance and specialized financial services.
Click here to view the full 2015 annual accounts for Natixis Structured Issuance SA.
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