Crédit Agricole S.A. took advantage of favourable market conditions to launch an issuance of AT1 notes denominated in USD. The Notes were issued to maintain Crédit Agricole Group's and Crédit Agricole S.A.'s high flexibility in their management of Tier 1 capital. The Crédit Agricole Group is one of the best capitalised financial institutions in Europe.

The Crédit Agricole Group's and Crédit Agricole S.A.'s Common Equity Tier 1 (CET1) Capital Ratios were 17.4% and 12.7%, respectively, at 30 September 2021, and distances to the levels that would trigger distribution restrictions stood at 764 basis points and 450 basis points, respectively. The Notes have no fixed maturity date. They will bear interest at a fixed rate of 4.75% per annum payable quarterly to (and excluding) 23 September 2029, after which the interest rate will be reset every five years at the then-prevailing 5-year Constant Maturity Treasury rate plus the initial margin of 323.7 basis points.

Interest payments are subject to cancellation under certain circumstances. The principal amount of the Notes will be written down temporarily if the Crédit Agricole Group's CET1 Capital Ratio (as defined in the terms and conditions of the Notes) falls, or remains, below 7% or Crédit Agricole S.A.'s CET1 Capital Ratio (as defined in the terms and conditions of the Notes) falls, or remains, below 5.125%. The Notes may be redeemed at the option of the issuer at any time between 23 March 2029 and the First Reset Date (included), and then at any time during each three-month period preceding (and including) each one-year anniversary of the First Reset Date, in each case with the prior approval of the regulator and subject to certain conditions specified in the terms and conditions of the Notes.

The Notes were subscribed by institutional investors in the United States, Europe and Asia. The offering attracted considerable interest, the order book exceeding USD 4.8 billion at its peak, and counting more than 170 investors at the final coupon level. The success of this issuance attests to the Crédit Agricole Group's credit quality.