AFL's EUR 500m Sustainability Bond Sees Strong Investor Demand

Agence France Locale (AFL), a public bank serving local authorities, has launched its first Euro Sustainability Bond, totaling EUR 500 million and maturing in 2035. This aligns with AFL's strategy to aid local authorities in achieving environmental and social objectives while expanding its investor base. The issuance is part of AFL’s Green, Social, and Sustainability Bond Framework, emphasizing sustainability in its financial activities.

The transaction attracted remarkable interest from investors, with an order book exceeding EUR 3.5 billion. This enthusiasm allowed AFL to set a spread at a record OAT +16 basis points, reflecting significant support for AFL's credit profile. The final re-offer yield was set at 4.075%.

Investor participation was diverse, with predominant involvement from asset managers, banks, and insurance companies. Geographically, the European investor base was well-represented, with contributions from regions including DACH, Nordic countries, and the UK.