Corporate innovation of the year: Casino €500 million hybrid capital issue

It may not have been the most successful deal of 2005, but the French supermarket group kick started the hybrid market.

At a glance:
Deal type:
Casino Guichard-Perrachon
€500 million 7.5% perpetual non-call five
Arranger: UBS
Lead manager: BNP Paribas
Date: January 2005

French retail group Casino Guichard-Perrachon was the first corporate to obtain significant recognition from the ratings agencies for selling a deeply subordinated debt instrument. The corporate hybrid sector had experienced a false dawn in 2003. Linde and Michelin sold deals then, but these were widely regarded as little more than expensive debt securities, with investors demanding extra spread for being subordinated in the companies’ capital structure.