13 April 2016: Launch of the new OAT 1.25% 25 May 2036 and the new OAT 1.75% 25 May 2066

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LAUNCH OF THE NEW OAT 1.25% 25 MAY 2036 AND THE NEW OAT 1.75% 25 MAY 2066

Agence France Trésor announces today the launch of the new OAT 1.25% 25 May 2036 and the new OAT 1.75% 25 May 2066. After the opening of the order book on Tuesday morning and its completion at midday, total demand reached an amount close to €20bn, of which €9bn were allocated.

Lead managers for this operation were Barclays, BNP Paribas, Crédit Agricole CIB, HSBC, Morgan Stanley and SG CIB. All the primary dealers were part of the syndicate.

Main characteritics of the OAT 1.25% 25 May 2036 issuance

The demand for the OAT 1.25% 25 May 2036 reached an amount of €12.6bn, of which €6bn were allocated. The all-in price has been set at 98.770, reflecting a yield of 1.320% at issuance.

The allocation illustrates a strong and diversified demand from final investors for French government bonds with long maturities, in particular a large proportion of banks (29%), insurance and pensions funds (24%), asset managers (22%), hedge funds (14%), and official institutions (11%).

 

 

The geographical distribution reflects a strong demand from European investors for French government bonds with long maturities, with United Kingdom representing 34%, France 21%, Germany 8%, Asia 13%, in particular Japan 7%, and Northern America 7%.

 

 

 

 

Main characteritics of the OAT 1.75% 25 May 2066 issuance

The demand for the OAT 1.75% 25 May 2066 reached an amount of €7.0bn, of which €3bn were allocated. The all-in price has been set at 94.458, reflecting a yield of 1.923% at issuance.

The allocation illustrates a strong and diversified demand from final investors for French government bonds with very-long maturities, in particular a large proportion of fund managers (46%), banks (20%), insurance and pensions funds (18%), hedge funds (13%), and official institutions (3%).

 

 

 

 

The geographical distribution reflects a strong demand from European investors, with Germany representing 27%, United Kingdom 23%, Netherlands 17%, Nordics 8%, France 7% and Northern America 7%.

 

 

 

 

Further details

The settlement date for both OATs is 19 April 2016. The two bonds will be strippable and quoted on Euronext Paris. They will be tapped to guarantee sufficient market liquidity, and depending on market demand.

Information:
+33 1 40 04 15 50
+33 6 72 24 03 88