Regular bond October
On Tuesday October 6th 2020 the Flemish Community launched and priced a dual tranche EUR BOND benchmark transaction. The Flemish Community issued a new 15 year bond (maturity 15/10/2035) and did a tap on the long 30 year bond (maturity 23/01/2051).
It was the third time this year that the Flemish Community came into the capital market with benchmark issues. The transaction was again very successful with a total orderbook over 11 billion euro. The largest orderbook and most accounts ever for the Flemish Community. Flanders decided to issue 2 billion euro in total with 1 billion euro in each tranche. The 15 year bond was placed with a coupon of 0.125% and a yield of 0.182% and the tap on the long 30 year was placed with a coupon of 1% and a yield of 0.63%.
The split by geography and investor type are shown below.
Once again there was a very important interest from the investors.
For the new 15 year bond the book was more than 5 billion euro with 155 investors from 22 different countries. German/Austrian/Swiss investors account for 24.30%, followed by France (21.63%), Benelux (19.51%) and Southern Europe (16.97%). By investor type funds/asset management were the largest group (30.99%) closely followed by Insurance/pension funds (30.97%). Also banks count for 22.57% in the books.
For the tap on the long 30 years the book was over 6 billion euro with 157 investors from 22 countries. Once again German/Austrian/Swiss investors are the largest group in the books (30.95%), followed by France (25.30%) Southern Europe (21.10%) and Benelux (14.20%). By investor type Insurance/pension funds are the largest group with 60.55% followed by Funds & Asset management by 27.55%.