France is gaining momentum in the area of green finance. Agence France Trésor, responsible for placing the state’s debt on the markets, issued its second green bond on Tuesday. This OAT (equivalent to the treasury bond) maturing in 2044 was torn off on the markets. Demand reached 34.5 billion euros for 7 billion proposed. It is one and a half times that which was reached during the inaugural issue of the first French green OAT, in 2017.
Faced with this appetite, France obtained rather advantageous conditions. The yield offered on issue stood at 0.526%, very slightly below the yield curve. In other words, at this maturity, Paris will pay a little less than if it had issued a conventional bond. However, despite this strong demand, AFT did not wish to increase the amount issued. Two weeks earlier, Italy had succeeded in issuing green bonds worth 8.5 billion euros.