On 10th May 2017, Agence France Locale, the French local government funding agency, priced their third Euro benchmark since the beginning of their activities. The new issue has a final maturity of 20th June 2024, pays an annual coupon of 0.5% to give a spread of +25bps over interpolated OAT.
The orderbook grew rapidly and closed at over €630 million. Strong investor interest with over 30 diverse investors (asset managers, central banks, bank treasuries, official institutions, etc.) making up nearly 75% of foreign investors.
Agence France Locale, having already priced over €300 million this year, has hence achieved 94% of their 2017 funding program.
Deal characteristics
Issuer: Agence France Locale
Issuer Rating: Aa3 stable outlook (Moody's)
Programme Rating: Aa3 stable outlook (Moody's)
Format: EMTN Programme (the Final Conditions regarding the Issue are available on the AMF web site (French Market Authority - Autorité des Marchés Financiers - www.amf-france.org) and that of Agence France Locale (www.agence-france-locale.fr). The Base Prospectus received the AMF visa n°17-170 on 21st April 2017 and can be found on the above-mentioned websites.
Size: EUR 500 million
Bond denomination: EUR 100 000
Settlement: 17th May 2017
Maturity: 20th June 2024 (7 year)
Coupon: 0.50%
Spread: OAT + 25 bps
Exchange: Paris Euronext
Final investor distribution :
| Distribution by type of investor | |
| Asset Managers | 21% |
| Central Banks / Official Institutions | 13% |
| Corporates | 10% |
| Insurance / Pension Funds | 0,50% |
| Bank Treasury | 55,50% |
| Distribution by geographical location | |
| France | 26% |
| Germany / Austria / Switzerland | 37% |
| United Kingdom & Nordics | 8% |
| Other Europe | 2,00% |
| Asia | 9,00% |
| Italy | 18% |
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