Instead of organizing a roadshow and visit the different investors in different countries, the Flemish Community decided  in consultation with our consortium of banks, to opt for a global investor call from Brussels on April 3th.

The day after the call, on April 4th, the Flemish Community went on the primary market. As almost all the underlying assets of the financing have a long depreciation period and since the long-term interest rates are still historically low, Flanders decided to issue a long-term benchmark. In addition the issuance of  a 25-year long-term sustainability bond increases further the average duration of the debt portfolio.

The transaction was successful with a total book size that exceeded EUR 2.6 billion. This is the largest order book ever. The Flemish Community decided to fix the size at 750 EUR million with a coupon of 1.5% and a yield of 1.567%.

split by geography
split by investor type
2019 split by investor type.jpg

Once again there was an important international interest in our issue. For this transaction there were 117 interested parties in the order book from 14 different countries, the largest number of investors ever. German and the Benelux investors were the main drivers for this transaction, that given the tenor mainly attracted insurance companies and (pension) funds.