Roland Lescure, Minister for the Economy, Finance and the Industrial, Energetical and Digital Sovereignty has approved the indicative State financing programme for 2026.
As in previous years, Agence France Trésor (AFT) will adjust its debt issuance programme to meet demand and guarantee a liquid market for its securities. The programme also specifies that bonds linked to French and European inflation indices will account for approximately 10% of net medium- and long-term debt issuance.
In addition, AFT may buy back debt (BTFs and nominal and inflation-linked OATs) in 2026 depending on market conditions.
The funding programme for 2026 provides for medium- and long-term issues net of buybacks of €310.0 billion. The funding requirement may be adjusted, if necessary, depending on the 2026 Budget Act.
1. Creation of new securities
In the nominal bond segment:
- AFT will issue one new 3-year benchmark, one new 5/6-year benchmark and a new 10-year benchmark via auction.
- AFT will examine, together with the primary dealers, the prospect of a syndicated issue of a new 20-year benchmark, depending on market conditions.
- AFT will examine, together with the primary dealers, the prospect of a syndicated issue of a new 30-year benchmark, depending on market conditions.
- AFT will also examine, together with the primary dealers, the prospect, depending on demand and up to the limit of eligible green expenditures, of a syndicated green OAT, with a shorter maturity than the existing nominal green OATs.
In the inflation-linked bond segment:
AFT will consider, depending on market demand, the opportunity of issuing via auction, a 10-year European inflation-linked bond.
More generally:
AFT will keep tapping all of the existing nominal and European and French inflation-linked bonds, depending on demand for them.
AFT will also keep tapping its green bonds according to market demand. All of these issues will be carried out within the limit of eligible green expenditure for 2026, the amount of which will be communicated later on.
Finally, like in 2025, a repo facility will be created, to be managed by the Caisse de la dette publique (CDP). This tool will allow to mobilise cash up to €20bn through short term repurchase agreements. This facility will be announced through a dedicated press release.
2. Methods and timing of auctions
Depending on market conditions and after consultation with primary dealers, an auction of nominal OATs and/or an auction of inflation linked OATs may take place on the first Thursday of December. During the other months, OATs with maturities of more than 8.5 years will be auctioned on the first Thursday of the month and OATs with a maturity of 2 to 8.5 years and inflation-linked OATs will be auctioned on the third Thursday of each month.
As an exception, in January, auctions of OATs with maturities of over 8.5 years will be held on the second Thursday, and auctions of OATs with maturities of less than 8.5 years and indexed OATs will be held on the fourth Thursday.
Auctions of nominal bonds will be held at 10.50 am (Paris time), and auctions of inflation-linked bonds at 11.50 am (Paris time). BTFs will be auctioned every Monday at 2.50 pm (Paris time).
AFT will inform the market of any change to the auction schedule.
Regarding the securities to be auctioned, as in previous years, AFT reserves the right to adapt its issuances by tapping non-benchmark issues in response to demand from investors as estimated by the primary dealers.
3. New collective action clauses in new bonds
Effective the first day of the second month following the ratification by all parties of the Agreement Amending the European Stability Mechanism Treaty, new State-issued bonds will include “single-limb” collective action clauses.
4. 2025 financing programme status outcome
The gross nominal value of medium- and long-term debt issuance in 2025 stood at € 347.7, consisting of €324.4bn in fixed-rate bonds and €23.3bn in inflation-linked bonds.
In 2025, AFT bought back €43.5bn of debt maturing in 2026 and €4.1bn in debt maturing in 2027.
Informations
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