February 2003
France: tracking inflation out to 30 years
Sovereign borrowers
|
France surprises with innovative long
maturity
bond issue |
One of the most impressive sovereign deals of 2002
was France's e4 billion 30-year bond indexed to eurozone-wide
inflation. Although France, like many other issuers, has long
experience in issuing domestic inflation bonds, this was only
its second eurozone CPI-linked deal. The first, in 2001, was
also well received, but at 10 years this was an easier
achievement. France's success in selling such an innovative
structure at such a long maturity surprised many in the
market, particularly in the light of a projected 15% increase
in government debt supply in 2003 over last year's levels.
Several sovereigns may try to emulate it this year - among
others Italy and Germany have expressed an interest in doing
so.
John Winter, European head of investment banking and
debt capital markets at Barclays Capital, says: "This was a
stunning deal. The Trésor team worked very hard to market an
innovative product that sceptics thought would find little
demand and, at 30 years, a maturity that few thought would be
achievable."
You must be a Level 2 subscriber to access this archived content.
If your subscription includes access to the archive, please log in now to view.
To gain access to this content visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30% on your subscription.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
Level 1:
- Online access to the past 12 months content
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Level 2:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe