PARIS - Societe Generale (OTC:SCGLY) has announced the completion of a post-stabilization phase connected to its recent bond issuance, confirming that no further stabilization activities will be conducted. The French banking giant had previously engaged in a stabilization period following the offer of two sets of securities with different maturities and coupons.
The securities in question comprise two tranches: the first with a coupon of 3% and a maturity date of February 12, 2027, and the second with a coupon of 3.625% set to mature on November 13, 2030. Both tranches collectively represent an aggregate nominal amount of EUR 1 billion. The offer prices were listed as 99.835 and 99.924, respectively.
Stabilization efforts, managed by SG CIB, were expected to commence on November 7, 2024, and were slated to end no later than December 13, 2024. Stabilization is a regulatory process that allows underwriters to buy and sell a new issue after it is brought to market to manage price volatility.
The announcement clarified that the stabilization manager(s) were permitted to over-allot the securities as allowed by applicable law, which is a standard practice to manage supply and demand after the issuance of new securities.
Societe Generale emphasized that this notice is purely informational and should not be construed as an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any securities. Moreover, the bank stated that the securities have not been and will not be registered under the United States Securities Act of 1933 and, as such, may not be offered or sold in the United States absent registration or an exemption from registration.
This move comes as part of Societe Generale's broader financing activities and is a routine step in the issuance of bonds by major financial institutions. Investors and market participants often monitor post-stabilization announcements as they can provide insights into the demand for new securities and the effectiveness of the stabilization process.
The information for this article is based on a press release statement issued through RNS, the news service of the London Stock Exchange (LON:LSEG).
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.