AFD is back on the 5 years segment with a 2024 public TAP

published on 14 February 2019
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Tuesday the 12th of February, The French Development Agency, rated AA (S&P) / AA (Fitch), has tapped with success, for EUR 700 million, its AGFRNC 0.375% 30/04/2024 Senior bond. This issue leads the funding program achievement above 33% of the annual target.

Tuesday the 12th of February, The French Development Agency, rated AA (S&P) / AA (Fitch), has tapped with success, for EUR 700 million, its AGFRNC 0.375% 30/04/2024 Senior bond. This issue leads the funding program achievement above 33% of the annual target. 
 
This tap has been priced with a reoffer yield of 0.264% (annual). Initially announced at OAT +35 bps area, the spread has been revised at OAT + 34bps area throughout the execution to finally reach the level of OAT + 33 bps. The order book, which had 42 orders of diversified international investors, has reached EUR 1.2 billion of demand (excluding JLM). It allowed AFD to print EUR 700 million, leading the total outstanding to EUR 2 billion. BNP Paribas (B&D), J.P. Morgan and Commerzbank were joint lead managers on this deal.
 

Allocated amounts by investor type :

Central banks and official institutions     49%
Asset managers 33%
Insurances 11%
Banks and private banks 5%
Corporates 2%

 

Allocated amounts by investor geography:

Germany 24%
Benelux 22%
France 16%
UK 12%
Other Europe 11%
Middle East 8%
Asia 7%

 

As the market looked very strong in euros, we decided to bring our first conventional bond in the five years maturity since the change of banking license. We had since come on this maturity with climate bonds, but not on the standard format since 2017. The success of this tap and the previous AFD issues underlines the good perception investors have on our credit.

Thibaut Makarovsky, Head of Funding and Market Operations