Agence France Locale Successfully Prices EUR 500m Sustainability Bond

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Agence France Locale has successfully priced its first Euro Sustainability bond, securing strong investor demand for the EUR 500 million 8-year transaction maturing on March 20, 2035. Opening with initial guidance, the order book surged past EUR 3.5 billion, enabling the bank to tighten the final spread to OAT plus 16 basis points, marking a record level for the institution. Asset managers constituted the largest share of allocations at 58 percent, followed by banks at 16 percent and insurance companies or pension funds at 11 percent. Geographically, DACH region investors led with 27 percent, while Nordic and domestic participants accounted for 21 percent and 19 percent respectively. The issuance aligns with AFL's updated framework and supports local public investment in environmental and social initiatives.

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French public bank AFL successfully issued a 500 million euro 8-year sustainable bond, recording over 3.5 billion euros in orders. The spread was set at OAT+16bp, tightening 4bp from initial guidance, demonstrating strong investor demand in the bond market. This issuance will serve as a key financing tool to support local governments' green and social objectives.

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