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.


Bond 2035 split by geography
2035 GEO
Bond 2035 split by investor type
Bond 2051 split by geography
2051 GEO
Bond 2051 split by investor type

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%.