BNP Paribas to issue 5-yr coverd bond -IFR

LONDON, June 2 (Reuters) - French bank BNP Paribas (BNPP.PA) plans to issue an inaugural 1 billion euro ($1.4 billion) five-year Obligation Fonciere, or covered bond, IFR reported on Tuesday.

Guidance has been set at mid-swaps plus around 80 basis points, said IFR Markets, a Thomson Reuters online news and market analysis service.

Commerzbank, Danske Bank and BNP Paribas itself are managing the triple-A issue, IFR said.

Covered bonds are backed by a pool of assets, in this case loans to the public sector, that remain on a bank's balance sheet, and they are seen as safer than other bank bonds because they give investors a claim on the assets as well as the lender itself. (Reporting by Jane Baird; Editing by Hans Peters)