Aspects of the transaction:
AFD’s first syndicated benchmark transaction of the year is marked by a strong return to the 3-year tenor in USD. The transaction gathered a well-diversified and granular orderbook despite volatile market conditions.
This USD 1.5 billion transaction offered a spread of SOFR MS +23bps equating to a re-offer yield and price at 1.385% (ann.) / 99.972%.
The joint lead managers on this transaction were BNP Paribas, Citi, Goldman Sachs, J.P. Morgan and Société Générale.
Execution and Placement:
The new benchmark was announced at 13:50pm (Paris Time) on Tuesday 11th January with initial price thoughts released at SOFR MS+24bps area.
The orderbook officially opened on Wednesday morning at 08:53am (Paris time) with indications of interest in excess of USD 1.2 billion (incl. USD 150m Joint-Lead managers orders) enabling to release the price guidance at SOFR MS+24bps area.
At 11:38am (Paris time), AFD fixed the spread at SOFR MS+23bps on the back of a large orderbook in excess of USD 1.5 billion (incl. USD 150m Joint-lead managers orders).
The orderbook continued to grow steadily and eventually closed in excess of USD 1.9 billion (incl. USD 150m Joint-lead Managers orders). Final terms were announced at 15:37pm (Paris time) with the final size set at USD 1.5 billion.
The transaction priced at 17:23pm (Paris time) with a coupon of 1.375%, a re-offer yield of 1.385% (ann.), equivalent to a spread of +17.1bps vs UST 1.125% 15/01/2025.
CBs / OI’s demand dominated the allocations (83%) followed by banks (12%). The majority of the demand came from the Americas (39%) followed by Asia (28%), Europe (25%) and MEA (8%).
Diane Menville, Head of Treasury and Capital Market: “We are very pleased to launch our 2022 funding program with this USD transaction, gathering top quality investors and marking AFD’s return on the 3-year maturity. We may come back on the USD market later during the year and will communicate soon about our 2022 funding needs.”
- Issuer: Agence Francaise de Developpement (AFD)
- Issuer ratings: AA/AA (Stable/Negative) S&P/Fitch
- Amount: USD 1.5 billion
- Settlement date: 21st January 2022 (T+5)
- Maturity date: 21st January 2025 (3-year)
- Issue price: 99.972%
- Coupon: 1.375%, annual, 30/360
- Re-offer yield: 1.385% (ann.)
- Re-offer spread vs SOFR MS: +23bps
- Denomination: USD 200k / USD 200K
- Listing: Euronext Paris, French Law
- Joint-Lead Managers: BNP Paribas, Citi, Goldman Sachs, J.P. Morgan, Société Générale
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