Crédit Agricole Group launches a bond-backed unit of account to contribute to the financing of six major French companies
Crédit Agricole’s Regional Banks and LCL are promoting a bond-backed unit of account, France Performance Juin 2009. This new product, sold in a life insurance wrapper, is available until 24 June 2009.
France Performance Juin 2009 is a unit of account backed by a portfolio of bonds issued by six major French companies included in the CAC 40 index, namely Veolia Environnement, Carrefour S.A., Lafarge S.A., Compagnie de Saint-Gobain, PPR S.A., and LVMH Moët Hennessy Louis Vuitton S.A.
Customers holding eligible life insurance policies such as Predissime 9, Optalissime, Floriane, Lionvie Rouge Corinthe, Lionvie Vert Equateur, Lionvie Multicapital, Actilionvie 1 or 2 and Lionvie Opportunité can invest directly in the new product via discretionary payments or switch into it from another investment. France Performance Juin 2009 offers a net yield of between 4.28% and 4.77% depending on the policy.
In the present low interest-rate environment, this new product provides customers with both yield and security over an 8-year investment period. This is a good opportunity to benefit from the attractive return and tax advantages of a life insurance product without exposure to the equity market.
Term sheet for Obligation France performance Juin 2009
- Obligation France Performance Juin 2009 is a bond under French law issued by Premium Plus Plc (a company registered under Irish law; the bond is listed in Dublin)
- Bond backed by life insurance policies from Predica S.A.
- Distributed by: Crédit Agricole Regional Bank and LCL networks
- Currency: EUR
- Subscription period: from 5 June 2009 to 24 June 2009 incl.
- Payment date: 29 June 2009
- Issue date: 29 June 2009
- Maturity: 13 July 2017
- Zero coupon: the interest is reinvested and paid on redemption. No interest is paid annually.
- Life: 8 years and 10 days
- Annual gross yield reinvested and paid at maturity in 8 years: 5.31% gross (between 4.28% and 4.77% net depending on the policy)
- Final payout: 151.273% (gross) of initial investment if none of the bonds issued by the French companies in the portfolio defaults.