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.
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.