New Green OAT syndication

France will come to the market, probably today, to launch its second Green OAT, maturing 25 June 2044. This is a maturity five years longer than the current Green OAT.

• There is currently E28.9bln outstanding of the 1.75% Jun-39 Green OAT, of which E1.5bln was sold in February via auction.
• France has E15bln of eligible green expenditures for 2021 (E13.5bln remaining), and the AFT has stated that the new Green OAT will be reopened afterwards with the existing Green OAT continued to be tapped.
• We expect a size of E7-8bln, which should allow 3-4 reopenings between the two Green OATs through the remainder of 2021. There is likely to be very strong demand.
• France has held four syndications since the beginning of 2020:
  • In January 2020 the 0.75% 30-year May-52 OAT was launched with order books of E26.5bln and a total size of E5.0bln.
  • In May the 0.50% May-40 OAT was launched with order books of E51bln and a total size of E7.0bln.
  • In June the 0.10% Mar-36 OATi launched with order books of E16bln and a total size of E3.0bln.
  • In January 2021 the 0.50% May-72 OAT was launched with order books of E75bln and a total size of E7.0bln.
• Timing: Books tend to close at 11:00UK/12:00CET with pricing around 14:00-15:15UK /15:00-16:15CET.
• Joint Lead Managers: BNP Paribas, Citi, Crédit Agricole CIB, HSBC and J.P. Morgan.