Agence France Trésor announces today the launch of the new OAT 0.50% 25 May 2072. After the opening of the order book on Tuesday early morning and its completion at midday, total demand reached almost €75bn, of which €7bn were allocated.
The price has been set at 95.895, reflecting a yield of 0.593% at issuance, establishing a new record low in terms of yield at issuance for an AFT syndication of a long end 50-year OAT.
Lead managers for this operation were BNP Paribas, Deutsche Bank, HSBC, J.P. Morgan and Société Générale. All the primary dealers were part of the syndicate.
The allocation illustrates the diversity and the quality of the investor base on which relies the French sovereign Debt. More than 400 final investors took part in the transaction. The syndicated amount has been allocated to asset managers for 35%, insurers for 26%, pension funds 18%, banks for 12%, hedge funds for 7% and official institutions for 2%.
The geographical distribution reflects a strong demand from European investors for French government bonds with long maturities, with Germany representing 30%, France 24%, the United Kingdom 19%, Netherlands 6%, Italy 4% with other Eurozone countries 5%, Nordics 5 % and also other European countries 3% and the rest of the world 5%.
Further details
The settlement date for the OAT is 26 January 2021. The bond will be strippable and quoted on Euronext Paris. It will be tapped depending on market demand to guarantee sufficient market liquidity.
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