15 September 1998: Launch of the first inflation-linked OAT: the July-2009 OATi

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Dominique Strauss-Kahn, France's Minister of the Economy, Finance and Industry, announces the successful launch of the first inflation-linked OAT, issued on Tuesday, 15 September 1998, in accordance with the timetable announced on 26 August 1998.

The OATi issue amounts to FRF 24 billion and generates a real yield rate of 2.98%. In view of the current level and medium-term prospects of inflation and fixed-rate bonds, this transaction is profitable for public finance.

The first of its kind in the euro area, this issue has attracted strong interest from the entire spectrum of professional and private investors alike. Demand was strong in both France and other countries, since about 20% of the first issue was placed with non-resident investors, the issue having been subscribed more than twice.

As already announced, the OATi will be regularly complemented by auction (including at least one auction before the end of the year) in order to give this new market the liquidity and depth characteristic of French government securities in general, for which French and international investors have a high regard.

Thanks to this latest success, which fits into strict and innovative management of French government debt and reflects the dynamism and attractiveness of the Paris market, Dominique Strauss-Kahn enables the State as an issuer to create a European benchmark loan which will be the starting point of a future yield curve for real euro-denominated interest rates.