Societe Generale initiates bond stabilization measures

Published 06/05/2025, 17:14
Societe Generale initiates bond stabilization measures

PARIS - Societe Generale (OTC:SCGLY) SA has announced its plans to potentially stabilize the market price of its newly issued bonds by engaging in transactions during a specific period starting today, as per the terms outlined by the European Union and UK financial regulations.

The French banking institution disclosed that its stabilization manager, SG CIB, has the authority to over-allot securities or conduct transactions aimed at maintaining the market price of the bonds above levels that would otherwise prevail in the open market. This stabilization period began today and is expected to last until June 13, 2025, although there is no guarantee that stabilization activities will take place, and such actions may stop at any time.

The securities in question consist of two tranches of bonds with different terms. The first tranche is a EUR 1.5 billion bond with a coupon rate of 3.375% and a maturity date of May 14, 2030, subject to a 5-year non-call period. The second tranche is a EUR 1 billion bond with a 4.125% coupon, maturing on May 14, 2036, and includes an 11-year non-call period. The offer prices have been set at 99.676 and 99.238, respectively.

Stabilization activities are common practices in the financial markets, used by underwriters to support the market price of a security after its initial offering. Such measures are regulated to ensure they are carried out within legal boundaries to prevent market manipulation.

The announcement clarifies that the offer and any stabilization measures are not intended for distribution or release, directly or indirectly, into the United States or to any U.S. persons as defined under the Securities Act of 1933. Moreover, the securities have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an exemption from registration.

The target audience for this offering and any related stabilization actions are professional investors and high net worth individuals in the United Kingdom (TADAWUL:4280), as well as qualified investors within the European Economic Area, according to the respective financial promotion and prospectus regulations.

This information, based on a press release statement, is provided for general informational purposes and does not constitute an offer or invitation to underwrite or acquire securities in any jurisdiction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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