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On Tuesday June 16th 2020 the Flemish Community successfully launched and priced a dual tranche EUR Bond benchmark transaction. A 7-year bond (maturity 23/06/2027) and a long 30-year bond (maturity 23/01/2051) were issued.

The transaction was very successful with a total book size of almost 8 billion. This is the largest orderbook ever. The Flemish Community decided to fix the size at 1 billion euro in each tranche, so in total 2 billion euro. The 7-years tranche was placed at a coupon of 0.01% and a yield of 0.008% while the 30-years tranche was placed at a coupon of 1% and a yield of 1.029%.

The split by geography and by investor type are shown in the pie charts below.


 

Bond 2027 split by geography
slpit bij geo 7years.jpg
Bond 2027 split by investor type 
slpit bij investor 7years.jpg
Bond 2051 split by geography
slpit bij geo 30years.jpg
Bond 2051 split by investor type 
slpit bij investor 30years.jpg

Once again there was an important international interest in our issue. For the 7-year transaction there were 146 interested parties in the order book from 17 different countries, the largest number of investors ever. Benelux investors were the biggest investor group with 39%, followed by German/Austrian/Swiss investors accounting for 21% and French investors for 17%. As for type of investors the transaction was mainly supported by banks (50%), funds (20%) and central banks (18%).

For the long 30-year transaction there were 122 investors in the order book from 13 different countries. German/Austrian and Swiss investors were most represented with 44%, followed by the French (22%) and South European (22%) investors. Given the tenor this transaction mainly attracted insurance companies and pension funds.