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AFD’s Board of Directors approved the 2022 funding program on January 25, setting the target at EUR 9 billion. In an effort to reach the French government’s target of dedicating 0.55% of France’s GNP to Overseas Aid by 2022, AFD will continue to finance its lending activity, which will also facilitate bond repayments over the year. AFD will execute these transactions under its €50bn EMTN (Euro Medium Term Note) program.
In 2021, AFD issued a total of €7.48 billion through thirteen issues. These trades were carried out over five public transactions:
- A fifteen-year bond of €1.25bn.
- Two SDG bonds in euros: a €1.5bn with a long seven-year maturity and a €2bn with a ten-year maturity. Almost a half of the 2021 funding program was funded through SDG bonds (48%).
- Two bonds in US dollars: a $2bn 5-year bond and a $600mn 3-year FRN bond on the SOFR market, AFD becoming the first French entity to issue under this format.
With these transactions, AFD demonstrated its ability to provide liquidity to its investors and to become a frequent actor on the SDG bond market.
In line with its commitments to the market, and pending conditions and investors’ requirements, Agence Française de Développement will issue in the medium and long term, at least two euro benchmarks. AFD has already issued a USD $1.5bn benchmark with a three-year maturity and a GBP 500mn benchmark with a long three-year maturity. Another USD benchmark could be considered this year, depending on market conditions. AFD’s commitment is to issue between 40% and 50% of its 2022 funding program through SDG bonds.
As in previous years, Agence Française de Développement will adapt to investor demand. Issuance of taps and Floating Rate Notes either under public or private formats will be subject to demand. AFD will also endeavor to meet the liquidity needs of investors, within the limit of a maximum of 2 billion per issue.
AFD will maintain the development of its private investment franchise in 2022, and will continue to send a pricing grid to its dealers on a weekly basis. Prices issued are in euros but AFD is willing to print in any currency (including exotic currencies).
Contact Investor relations: _AFD_Funding@afd.fr
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