Agence France Trésor announces today the launch of the new OAT€i 0.10% 25 July 2053. After the opening of the order book on Tuesday morning and its completion at midday, total demand reached almost €24bn, of which €3bn were allocated.
The price has been set at 137.696, reflecting a real yield of -0.926% at issuance, establishing a new record low in terms of real yield at issuance for an inflation-indexed OAT syndication.
Lead managers for this operation were BNP Paribas, Citi, Crédit Agricole CIB, J.P. Morgan and Société Générale. All the primary dealers were part of the syndicate.
The allocation illustrates a large ordre book arising from a very diversified investor base. Close to 200 final investors took part in the transaction. The syndicated amount has been allocated to asset managers for 35%, banks for 28%, insurance for 11%, pension funds for 11%, official institutions for 10%, and hedge funds for 5% .
The geographical distribution reflects a strong demand from European investors for French government inflation-indexed bonds with long maturities, with United Kingdom representing 33%, France 32%, Italy 11%, Germany 5%, other Eurozone 6%, Nordics 8%, other Europe 4%, and others 1%.
The settlement date for the OAT€i is 1 February 2022. The bond will be strippable and quoted on Euronext Paris. It will be tapped to guarantee sufficient market liquidity, and depending on market demand.
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