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Agence Française de Développement successfully priced a new 3.000% €2 billion benchmark due 17th January 2034

communication financière AFD

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

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