AFD new 1bn euro 5-year climate bond

published on 10 February 2020
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Monday February the 10th, the Agence Française de Developpement rated AA (S&P) / AA (Fitch), succefully issued a 1 billion euro Climate Bond maturing 25 March 2025. It is the biggest climate bond issued by AFD since its inaugural in 2014.

The bond pays a 0% coupon with a final yield of -0.245% (annual), matching a spread of +23bps above the OAT. Starting with a guidance of OAT+28bps, AFD had the opportunity to tighten the spread by 5 bps to reach its final level, representing the largest tightening ever operated by the Agency. 
The order book also reached an historical highest level with 4.7 billion euros (excluding JLM) of demand for a total of 150 orders, allowing AFD to raise 1 billion euro. BNP Paribas, CACIB, HSBC, Natixis and Société Générale were joint lead managers on this operation. 

This climate bond refers to the dedicated Climate Bond Framework set up in 2017. The Framework follows the Green Bond Principles and has been reviewed by Cicero. It is the fourth climate bond to be issued since 2014. AFD totalize now an outstanding of 3.25 billion euro of Climate Bond. 

Split of the allocated amounts by investor type and geography 

AFD new 1bn euro 5-year climate bond

Thibaut Makarosvky, head of Funding and Market Operations : “This operation validates AFD’s come back on a 5-year maturity after a public tap of an existing bond with the same maturity in 2019. This is also a come back on the climate bond segment, the latest has been issued in September 2018. Investors’ support was very strong, leading the book to a billion euros of demand after 30 minutes. The order book rose to 5 billion euro in less than 2 hours. It has allowed the Agency to print at the tightest level over OAT since the change of banking license in june 2017.” 

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