By Robert Hogg
LONDON, May 15 (IFR) - France has mandated banks for a
30-year syndicated bond that will be the first test of investor
appetite since centrist Emmanuel Macron was elected President in
The sovereign has mandated BNP Paribas, Citigroup, HSBC, JP
Morgan and Societe Generale for the May 25 2048 transaction, and
will follow French public sector and bank borrowers which poured
into the market last week, taking advantage of tighter spreads
Bpifrance printed its largest ever deal, while Compagnie de
Financement Foncier was able to issue through its outstanding
curve. Other credits joined in as international investors rushed
back to the jurisdiction.
"They had a deep think about the best timing," said a lead.
"Waiting for the election to pass made a lot of sense because of
the volatility...clearly market conditions are good. Also we saw
a flurry of issuance last week and everything went quite well."
The spread between France and Germany blew out from 21.5bp
in September 2016 to 79bp in February 2017 as concerns about a
potential win by far right candidate Marine Le Pen escalated. It
has since recovered to 39.5bp.
France's transaction will be launched by syndication in the
near future. All other primary dealers in the Republic of France
government bond market will be invited into the syndicate.
The issuer is rated Aa2/AA/AA/AAA, all with stable outlooks.
(Reporting by Robert Hogg, Editing by Helene Durand and Sudip