The Agency will finance loans related to development projects in order to contribute to reach the target of 0.55% of GNP dedicated to Public Aid by 2022 set by the French State. The proceeds will also refinance reimbursement of bonds. AFD will execute these transactions under its EUR 50bn EMTN program.
True to its commitments to the market, but pending on market conditions and investors’ requirements, Agence Française de Développement will issue on the medium and long part of the curve with at least two EUR benchmarks, one of which will be a SDG Bond. The Agency already issued on January 14th a USD 2bn benchmark with a five-year maturity. Another USD benchmark could be considered this year, up to market conditions.
Like the previous years, Agence Française de Développement will adapt to the demand of investors. Issuance of taps and Floating Rate Notes either under public or private format will be subject to the shape of demand. The increase of liquidity for a given bond will be considered in the limit of a maximum of 2bn per bond.
AFD will continue to develop its private placements franchise in 2021. The Agency will keep on sending a pricing grid to its dealers on a weekly basis. Prices issued are in euro but AFD is open to print in any currencies.
Besides, Agence Française de Développement plans to issue at least a new SDG Bond. As a reminder, to reflect the diversity of its actions to support sustainable development, the Agency has implemented a new SDG Bond Framework in October 2020.
For 2020, AFD issued a total amount of EUR 9.912 billion through twenty-one issues. Among these trades, six public transactions:
- A ten-year bond of EUR 1,5Bn
- A EUR 1Bn climate bond with a fixe-year maturity and a 2bn inaugural SDG Bond with a seven-year maturity.
- In USD, the Agency has issued a 2bn 3-year bond and a 1bn 18-month FRN bond.
- AFD has also done a public tap of EUR 1bn of the May-35 bond, led to EUR 1,75bn.
With these transactions, AFD demonstrated its ability to provide liquidity to its investors and to become a frequent actor on the SDG bond market.