Benchmark USD 2bn – Jun 2029 : AFD successfully issued a new 2 billion US dollars sustainable benchmark maturing on 4 June 2029

Transaction Highlights

This transaction constitutes AFD’s fourth benchmark issuance of the year, second USD-denominated, and third SDG issuance of 2026.

This USD 2bn transaction offered a spread of 51bps over the SOFR mid-swap curve, equivalent to a semi-annual re-offer yield of 4.403% and a re-offer price of 99.922% with a coupon of 4.375% payable semi-annually.

Taking advantage of the upswing sparked by recent positive announcements, the transaction witnessed strong investor demand from a diverse and very high-quality investor base, notably from the Central Banks and Official Institutions community, with final order books closing in excess of USD 5.4bn (incl. USD 100m JLM interest).

Antoine Mannevy, Deputy Head of Funding and Market Operations at AFD: “Benefiting from a strong momentum, AFD demonstrated the quality of its signature that is dedicated to refinance development projects around the world. A high-quality SDG framework and an ongoing presence in the USD benchmark market since 2009 backed our new 3-year USD line resulting in one of the largest participations ever of Central Banks and Official Institutions accounts.

We are grateful for each order received from investors, supporting our second USD transaction of 2026, after a very successful 5-year USD benchmark in January. We are progressing towards the completion of our 9.5bn€ funding program, with above already 7.5bn€ funded.”

Transaction Execution

Capitalising on a positive momentum supported by a favourable news flow amid geopolitical turmoil, IPTs were released on Tuesday, 26 May 2026 in the SOFR MS+54bps area, at 14:44 CET.

The following day, on the back of more than USD 3bn of total Indications of Interest (incl. USD 100m JLM interest), order books opened at 09:03 CET, with the Guidance communicated at SOFR MS+52bps area.

At 11:05 CET, as order books reached USD 4.4bn (incl. USD 100m JLM interest) supported by qualitative orders, AFD set the spread at SOFR MS+51bps, implying 3bps of tightening from IPTs while not yet fixing the final size.

As the strong momentum continued, order books exceeded USD 5.2bn (incl. USD 100m JLM interest), enabling AFD to launch the transaction while communicating the final size at USD 2bn at 12:06 CET.

Books closed at 14:00 CET, at their peak size of USD 5.4bn (incl. USD 100m JLM interest), enabling the transaction to be priced at 15:31 CET with a coupon of 4.375%, and re-offer yield of 4.403% translating into a price of 99.922%.

The allocation breakdown by investor type reflects the very high-quality of the orderbook: 59% of allocated orders went to CB, followed by Asset Manager / Insurance with 18%, OI with 14%, Banks Treasury with 4% and Others (incl. HF) for only 5%.

In terms of geography, orders were diversified with 28% of allocations to investors from Americas, 28% from Asia, 20% from the UK/Ireland, 14% from Western Europe and 10% from MEA. 

An amount equivalent to net proceeds of the issuance will be used to finance/refinance a portfolio of loans that meet the criteria defined in the group’s SDG bond issuance framework published in 2024.

Transaction Details

• Issuer: Agence Française de Développement
• Ratings: A+ Stable (S&P) / A+ Stable (Fitch)
• Transaction Size: USD 2 billion
• Issue Date: May 27th, 2026
• Settlement Date: June 4th, 2026 (T+6)
• Maturity Date: June 4th, 2029
• Re-offer Price: 99.922%
• Coupon: 4.375% Fixed, Semi-annual, 30/360
• Semi-Annual re-offer Yield: 4.403%
• Final Spread: 51 basis points over the SOFR mid-swap curve
• Listing: Euronext Paris
• Joint Lead Managers: CACIB, Deutsche Bank, J.P. Morgan, Nomura, Santander

Allocation Breakdown: