01 March 2007: Creation of the 25 July 2040 OAT€i and stripping of inflation-linked bonds

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Agence France Trésor announces the creation in the coming days, subject to market conditions, of a new 30 year OAT€i. The maturity of this new bond, indexed on the euro zone harmonized inflation consumer price (HICP) index (excluding tobacco), will be July 25, 2040.

The amount issued will ensure the initial liquidity of this OAT€i (benchmark size). This bond will be furthermore auctioned according to investors demand and in order to guarantee a liquidity comparable to that of existing inflation-linked bonds.

Lead managers for this operation are Barclays Capital, JP Morgan, Société Générale and UBS and senior co-lead managers are ABN Amro, BNP Paribas and Natixis. All primary dealers (SVTs) are members of the syndicate.

AFT issues inflation-linked bonds once a month except in August and in December. Due to this operation, the next auction of indexed-linked bonds will take place on Thursday 19 April.

Moreover, the AFT has decided to make European and French inflation-linked bonds eligible to stripping operations. It has requested the "GIE strips", with participation of all SVTs and the central depository Euroclear France, to propose modalities by the end of March.



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