France sells 3.5bn eur of new 2036 linker bond by syndication

PARIS: The French government has sold 3.5 billion euros ($4.31 billion)of a new 2036 bond with a yield linked to eurozone inflation, the public debt management office said on Thursday.

The bond drew 11.5 billion euros of demand, which the Agence France Tresor (AFT) agency said was the biggest order book collected for one of its inflation-linked bonds.

The bond carries a coupon of 0.10 percent and was priced with a real yield of -0.361 percent at issuance, which the AFT said reflected a record low for that type of bond issued by syndication.

The joint lead managers were Barclays, BNP Paribas , HSBC, JPMorgan and Natwest Markets , the AFT said.