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AFD’s board of directors approved on January 30th the funding program. The target is set at EUR 7.5 billion. The Agency will finance loans related to development projects in order to contribute to reach the target of 0,55% of GNP dedicated to Public Aid by 2022 set by the French State. The proceeds will as also refinance reimbursement of bonds. AFD will execute these transactions under EMTN program.
True to its commitment to the market, but pending on market conditions and investors’ requirements, Agence Française de Développement will issue on the medium and long part of the curve with at least two EUR benchmarks, one of which will be a climate bond. The Agency will also issue at least one USD benchmark. Order and timing of issuance will depend on market conditions.
Like the previous years, Agence Française de Développement will adapt to the demand of investors. Issuance of taps and Floating Rate Notes either under public or private format will be subject to the shape of demand.
The increase of liquidity for a given bond will be considered in the limit of a total of 2bn maximum.
AFD will continue to develop its private placement franchise in 2020. The Agency will keep on sending a pricing grid to its dealers on a weekly basis. Prices issued are in euro but AFD is open to print in any currencies.
Besides, Agence Française de Développement plans to issue a new Climate Bond. The commitment to investors is to issue a Climate Bond every twelve to eighteen months. As a reminder, AFD issued its latest Climate Bond in September 2018. General characteristics of the bond will be as defined by the Climate Bond Framework designed in 2017.
For 2019, AFD issued a total amount of EUR 6.44 billion through twenty-one new bonds. Among these trades, five public transactions:
- a ten year bond of EUR 2 billion (biggest transaction in euro ever for AFD) ;
- a sixteen year bond of EUR 750 million and a three year bond of USD 2 billion (biggest transaction in USD ever for AFD);
- a public FRN of USD 650 million, and a public tap of EUR 700 million of the April 2024 bond, led to EUR 2 billion now.
With these transactions AFD demonstrated its ability to provide liquidity to investors.
Investors relations: _AFD_Funding@afd.fr