Agence France Trésor announces today the launch of the new OAT 0.75% 25 May 2052. After the opening of the order book on Tuesday early morning and its completion at midday, total demand reached almost €26.5bn, of which €5bn were allocated.
The price has been set at 100.659, reflecting a yield of 0.727% 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, Goldman Sachs International Bank, HSBC and J.P. Morgan. 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 250 final investors took part in the transaction. The syndicated amount has been allocated to asset managers for 26%, banks for 24%, pension funds for 20%, insurers for 16%, official institutions for 7% and hedge funds for 7%.
The geographical distribution reflects a strong demand from European and International investors for French government bonds with long maturities, with France representing 20%, Italy 15%, Germany 12%, the United Kingdom 10%, North America 9%, Netherlands 8%, Scandinavia 4%, other Eurozone countries 16% and the rest of the world 6%.
Further details
The settlement date for the OAT is 4 February 2020. 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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