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Agence française de développement successfully prices a new 4.125% EUR 1.5 billion benchmark due 25 May 2034

Financial press releases

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On Wednesday 9 September 2026, Agence française de développement (AFD), rated A+ (stable) by S&P and A+ (stable) by Fitch, successfully issued a new EUR 1.5 billion short 8-year benchmark due 25 May 2034, offering a spread of 23 bps over the OAT curve.

Transaction highlights

  • Successfully printed a EUR 1.5 billion benchmark transaction, supported by a final orderbook in excess of EUR 3.1 billion, reflecting strong investor demand — c. 2.1x covered.
  • The bond was priced at a final spread of 23 bps over the OAT curve, resulting in an annual re-offer yield of 4.254% and a re-offer price of 99.187%, with a coupon of 4.125%.
  • Maturity matching the OAT May 2034, offering a clear reference point on the French sovereign curve.
  • This transaction represents AFD's last public benchmark issuance for 2026.

Thibaut Makarovsky, Head of Funding and Market Operations at AFD: "We are delighted with the success of this transaction against a volatile market backdrop. This issuance enables AFD to complete its 2026 public bond programme while beginning to pre-fund part of its 2027 funding programme. The depth of the orderbook and the diversity of participating investors reflect the confidence in AFD's credit and confirm the successful execution of our funding strategy. We would like to thank all our investors for their continued support."

Execution and allocations

The transaction was announced to the market at 11:15 CET on Tuesday 8 September, for a new short 8-year benchmark maturing on 25 May 2034.

Following investor feedback gathered throughout the day, and amid a more volatile market environment than the previous day, AFD announced guidance at OAT +25 bps at 09:00 CET on Wednesday, offering sufficient concession to attract investor demand.

With the orderbook surpassing EUR 2.6 billion (including JLM interest) by 11:15 CET, AFD was able to revise pricing 2 bps inside guidance, setting the final spread at OAT +23 bps in order to preserve the high quality of demand.

Demand continued to build following the spread tightening, with the orderbook ultimately reaching EUR 3.2 billion. This strong momentum enabled AFD to announce a final transaction size of EUR 1.5 billion at final terms.

The transaction priced at 14:22 CET with a coupon of 4.125% and a final yield of 4.254%, which translated into a re-offer price of 99.187%.

The final allocation underscores both the depth and the quality of investor demand. Central banks and official institutions accounted for 45% of allocations, while asset managers, pension funds and insurance companies also represented 45%. Bank treasuries were allocated 5% of the transaction, with the remaining 5% distributed to hedge funds and other investors. Geographically, Europe (excluding France) and the United Kingdom constituted the largest allocation region with 60%, followed by Asia (23%), the Middle East and Africa (8%), France (6%) and the Americas (3%).

Transaction details

  • Issuer: Agence française de développement
  • Ratings: A+ stable (S&P) / A+ stable (Fitch)
  • Transaction size: EUR 1.5 billion
  • Issuing date: 9 September 2026
  • Settlement date: 16 September 2026
  • Maturity date: 25 May 2034
  • Re-offer price: 99.187%
  • Coupon: 4.125% fixed annual, Act/Act (ICMA)
  • Annual re-offer yield: 4.254%
  • Re-offer spread: +23 bps
  • Reference OAT: FRTR 1.25% 05/25/34
  • Listing: Euronext Paris
  • ISIN: FR001401AXV5
  • Joint lead managers: BNP Paribas / Barclays / Citi / J.P. Morgan / Morgan Stanley / Natixis

Investor distribution