Agence France Trésor announces today the launch of the new OAT 1.50% 25 May 2050. After the opening of the order book on Tuesday early morning and its completion at midday, total demand reached more than €31bn, of which €7bn were allocated. Thus, this operation matches two historical records, both in terms of size of the order book and amount issued, previoulsy reached by the syndication of the OAT 2.00% 25 May 2048 launched by AFT on the 16 May 2017.
The price has been set at 97.338, reflecting a yield of 1.609% at issuance, establishing a new record low in terms of yield at issuance for an AFT syndication of a long end 30-year OAT.
Lead managers for this operation were BNP Paribas, Crédit Agricole CIB, HSBC, JP Morgan et Société Générale. All the primary dealers were part of the syndicate.
The allocation illustrates the very diversified investor base on which relies the French sovereign Debt. Almost 300 final investors took part in the transaction. The syndicated amount has been allocated to asset managers for 47%, insurance for 17%, pensions funds for 15%, official institutions for 5%, banks for 12% and hedge funds for 4%.
The geographical distribution reflects a strong demand from European and International investors for French government bonds with long maturities, with United Kingdom representing 26%, Germany 22%, France 11%, Scandinavia 8%, Italy 7%, Netherlands 7%, other Eurozone 9% and the rest of the world 10%.
The settlement date for the OAT is 26 February 2019. 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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