Natixis Structured Issuance (NSI), the wholly-owned, indirect subsidiary of Natixis SA whose principal activity is the issuance of euro medium-term notes (EMTN), has reported an outstanding of €4.4bn as of December 31, 2016, up 32% from the €3.3bn registered at the end of the previous semester.

The outstanding of notes issued under the company's English Law Debt Issuance Program stood at an aggregate nominal amount of €2.9bn (1H2016: €2.3bn) at the end of December; bonds under its French Bonds Program - which is governed by French law - in an aggregate nominal amount of €1.2bn (1H2016: €904m); certificates under its English Language Certificate Programme in an aggregate nominal amount of €98m; warrants under its Warrant Program in an aggregate premium amount of €85m (1H2016: €80m); and certificates under the German Language Certificate Program in an aggregate nominal amount of €93m (1H2016: €13m).

At the end of 2016, 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 in 2017 should exceed €5bn or might even get closer to €6bn if market conditions are favourable.'

Since its inception in 2013, 13 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).

The maturity dates of the outstanding notes and certificates, as at December 31, 2016, range from January 2, 2017 to December 8, 2036. The market risk for NSI's structured notes is fully hedged with Natixis SA while the credit risk is also limited to Natixis SA, the only counterparty and guarantor of the company.

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.

In France, 113 structured products worth an estimated €1.6bn, were issued via the Natixis Structured Issuance vehicle between April 2014 and May 2017. The French products were mainly distributed via private banks or independent financial advisors including, among other, Astoria Finance, Banque Privée 1818, Banque Privée Européenne, Equitim, Exclusive Partners, i-Kapital, Irbis Finance and Swiss Life Banque Privée.

A further 52 structured products with combined sales of SEK494m (€50m) were marketed in Sweden via Erik Penser, Exceed, Garantum, Mangold, Oak Capital, Strukturinvest and Svenska Garantiprodukter, respectively, while in neighbouring Finland five products (€7m) were distributed via SP Kapitaali (three) and Garantum (two).

In Italy NSI launched 25 products, predominately phoenix certificates, and in Belgium the company launched seven products, each targeted at private banking investors, including six products distributed via Puilaetco Dewaay and one product which was issued in collaboration with SG Private Banking. The latter, the six-year Autocallable Switch Note, was linked to the Euronext BeNe 40 Equal Weight, an index which is licensed to Natixis.

In Luxembourg, where the company is registered, three products were issued via KBL European Private Bankers.

Click the link to view the full 2016 annual accounts for Natixis Structured Issuance.

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