Agence Française de Développement successfully priced a new 3.000% €2 billion benchmark due 17th January 2034
published on 10 January 2024
On Wednesday 10th January, Agence Française de Développement (AFD), rated AA /AA- (S&P / Fitch), issued its first benchmark of the year, a €2 billion 10-year benchmark due on the 17th January 2034 which offers a spread of 42bps over the interpolated OAT curve.
With a stable and supportive market backdrop, the transaction was announced at 11:30 CET on Tuesday 9th January 2024. Books opened the following morning at 09:00 CET with initial price guidance of interpolated OATs+44bps area.
Despite a very busy week in primary markets, momentum for the transaction was strong from the outset, and at 11:35 CET, books reached in excess of €4.5bn (incl. €225mn of JLM Interest). At this point, the final spread was set at interpolated OATs+42bps, two basis points inside initial price guidance.
The orderbook continued to grow and closed at 12:00 CET north of €6.8bn (incl. €225mn of JLM Interest), which allowed AFD to fix the size at €2bn, representing an oversubscription rate of 3.4x.
In terms of allocations, the transaction was well supported by high-quality, and geographically diverse investor demand. Fund managers represented the largest pool of demand, accounting for 35% of final allocations followed by banks with 23%, central banks and official institutions with 22%, insurance and pension funds with 17% and others taking the final 4%.
By geography, the domestic French market represented the largest share of allocations with 20% followed by Germany, Austria and Switzerland with 18%, UK with 13%, Nordics with 13%, Southern Europe with 13%, Asia with 10%, Benelux with 7%, Middle East with 3% and others taking the final 4%.
Thibaut Makarovsky, Head of Funding and Market Operations at AFD: “We were thrilled to begin the funding programme for 2024 with such a successful transaction in the 10yr part of the curve. We are delighted by the support from the investor community in this new issue, especially amidst a very busy primary market in SSA since the start of the year. We will communicate our funding needs for 2024 at the end of January.”
- Issuer : Agence Française de Développement
- Ratings : AA Negative outlook (S&P) / AA- Stable outlook (Fitch)
- Size of the transaction : €2,000,000,000
- Pricing Date : 10th January 2024
- Settlement date : 17th January 2024
- Maturity Date : 17th January 2034
- Reoffer Price : 98.974%
- Coupon : 3.000%
- Reoffer Yield : 3.121%
- Reoffer Spread : +42bps
- Reference OATs : FRTR 3.500% 11/25/33 ( 106.93 / 2.690%) and FRTR 1.250% 05/25/34 ( 86.81 / 2.727%)
- Listing : Euronext Paris
- Governing Law : French
- ISIN : FR001400N7K2
- Joint Lead Managers : BofA Securities, BNP Paribas, Goldman Sachs Bank Europe SE, J.P. Morgan Chase, Societe Generale
- Use of Proceeds : General Corporate Purposes
Contact : _AFD_Funding@afd.fr
Pour en savoir plus : Espace investisseurs
