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Benchmark GBP 300Mn – Oct 2029 - Agence française de développement successfully priced a new 4.500% £300 million benchmark due 22nd October 2029

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On Wednesday 1st July, Agence Française de Développement (AFD), rated A+/A+ (S&P / Fitch), issued a new GBP benchmark for the year, a £300 million fixed rate benchmark due on the 22nd October 2029, offering a spread of 56bps over Sonia mid-swaps.

Following prior benchmark issuance in both EUR and USD this year, and with a supportive window for GBP, the new transaction was announced at 09:25 CET on Wednesday 1st July 2026. Orderbooks were opened concurrently, with initial price guidance of Sonia mid-swaps +57bps area.

Agence Française de Développement was able to capture a clear window for issuance ahead of the summer period, responding to a resurgence in investor demand in recent sessions and a constructive market tone despite the political news flow ongoing in the UK. The success of this transaction underscores the increasingly established signature of AFD in the Sterling market, well-recognised by the investor base.

The orderbook grew well throughout the morning, announced at over £500mn (excl. JLM) at 11:30 CET. In line with their previous issuance, the deal size was set at GBP 300mn, providing clarity to investors. Supported by the depth of investor demand and modest size aspirations, the spread was set one basis point tighter at Sonia mid-swaps + 56bps. Investor demand grew further from this spread confirmation and books closed above £600mn (excl. JLM) at 12:15 CET. With a final print of £300mn, this therefore marked the highest oversubscription rate for an AFD issuance in Sterling.

In terms of allocations, the transaction was well supported by central banks / official institutions (65%) and fund managers (24%), with the remaining allocation (11%) going to bank treasuries and other accounts.

By geography, the investor support was well-diversified with Europe (ex. UK & Ireland) at 33% and UK/Ireland at 27%. This was followed by Middle East & Africa (17%), Asia (13%) and the Americas (10%), with the broad investor base underscoring the well-developed AFD signature across the Sterling market.

Thibaut Makarovsky, Head of Funding and Market Operations at AFD: “We are delighted to have successfully launched this Sterling benchmark issuance today, capitalizing on favorable market conditions. With this fifth consecutive annual transaction in GBP, AFD further consolidates its position as a highly regular issuer in this market. The strong reception and engagement from investors have enabled us to achieve the second-largest order book ever for a public AFD issuance in GBP. We warmly thank our investors for their continued trust.”

Transaction Details:

  • Issuer : Agence Française de Développement
  • Ratings :  A+/A+ (Stable/Stable, S&P/Fitch)
  • Size of the transaction : £300,000,000
  • Pricing Date : 1st July 2026
  • Settlement date : 8th July 2026
  • Maturity Date : 22nd October 2029
  • Reoffer Price : 99.730%
  • Coupon : 4.500%
  • Reoffer Yield : 4.597% A / 4.545% SA
  • Reoffer Spread : +56bps vs SONIA MS
  • Reference UKT : +38.72bps vs UKT 0 ⅞ 10/22/29 (MID)
  • Listing : Euronext Paris
  • Governing Law : French
  • ISIN : FR0014019PG9
  • Joint Lead Managers : NatWest / Nomura / Santander
  • Use of Proceeds : General Corporate Purposes
Investors by Geography  
Europe 33%
UK/Ireland 27%
MEA 17%
Asia 13%
Americas 10%
Investors by Type  
CB/OI 65%
AM 24%
Bank Treasury & Other 11%