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Benchmark EUR 2bn – Sept 2033: Agence Française de Développement successfully priced a new 3.625% €2 billion benchmark due 15th September 2033
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On Wednesday 13th May, Agence Française de Développement (AFD), rated A+ /A+ (S&P / Fitch), issued a €2 billion Long 7-year benchmark due on the 15th September 2033 which offers a spread of 24bps over the interpolated OAT curve.
With a stable and supportive market backdrop after US CPI, the transaction was announced at 14:40 CET on Tuesday 12th May 2026. Books opened the following morning at 08:45CET with initial price guidance of interpolated OATs+27bps area.
Despite a very busy week in primary markets, momentum for the transaction was strong from the outset, and at 10:45 CET, books reached in excess of €5.8bn (incl. €350mn of JLM Interest). At this point, the final spread was set at interpolated OATs+24bps, three basis points inside initial price guidance.
The orderbook continued to grow and closed at 11:45 CET north of €6.2bn (incl. €350mn of JLM Interest), which allowed AFD to fix the size at €2bn, representing an oversubscription rate of 3.1x.
In terms of allocations, the transaction was well supported by high-quality, and geographically diverse investor demand. Fund managers and pension funds represented the largest pool of demand, accounting for 49% of final allocations followed by central banks and official institutions with 35%, bank treasuries with 10% and others taking the final 6%.
By geography, Western Europe represented the largest share of allocations with 38% followed by Nordics with 27%, Asia with 18%, UK/Ireland with 10% and others taking the final 7%.
Thibaut Makarovsky, Head of Funding and Market Operations at AFD: “The success of this new 7-year euro-denominated bond issue confirms AFD’s ability to act as a benchmark issuer of sustainable bonds, financing €2 billion in assets aligned with the SDGs. This transaction also underscores the strong momentum behind the AFD signature since the beginning of the year and the sustained demand it continues to attract. It reflects the quality of our dialogue with investors, whom we would once again like to warmly thank for their trust and commitment by our side.”
Details of the transaction
| Issuer | Agence Française de Développement |
| Ratings | A+ Stable outlook (Fitch) / A+ Stable outlook (S&P) |
| Size of the transaction | €2,000,000,000 |
| Pricing Date | 13th May 2026 |
| Settlement date | 20th May 2026 |
| Maturity Date | 15th September 2033 |
| Reoffer Price | 99.446% |
| Coupon | 3.625% |
| Reoffer Yield | 3.715% |
| Reoffer Spread | +24bps |
| Reference OATs | FRTR 3.00% 05/33 (97.305%/3.438%) and FRTR 3.50% 11/33 (99.998%/3.498%) |
| Listing | Euronext Paris |
| Governing Law | French |
| ISIN | FR0014018LQ9 |
| Joint Lead Managers | Citibank Europe Plc, Goldman Sachs Bank Europe SE, NatWest Markets N.V., Banco Santander S.A., Société Générale |
| Use of Proceeds | The net proceeds of the Notes will be allocated by the Issuer to a portfolio of eligible loans which will be used to finance eligible climate, social and/or sustainable projects pursuant to the updated AFD SDG Bond Framework as of November 2024 which is available on the website of the Issuer : https://www.afd.fr/en/ressources/updated-sdg-bond-issuance-framework-afd |
Being a Sustainable issuance, the proceeds of the bond will be used to finance/refinance a portfolio of loans that meet the criteria defined in the group’s SDG bond issuance framework.