The French Development Agency (AFD) had not gone to the euro market in three years. It carried out two U.S. dollar bond issues, one in 2008 and another in early 2009 (each for $1 billion), but had not yet borrowed in euros. The agency is a regular bond issuer and is opportunistic in its choice of currencies, which sometimes resorts to private placements. They wanted to take advantage of the bond market’s re-opening at the beginning of the year, and we were able to seize this opportunity!

This bond issue is a good market reference. A successful, high-quality transaction of this nature, i.e. a non-sovereign with a AAA rating, highlights our technical skill for other issuers with a similar profile. It also ties in other commercial interests and fits within the framework of our socially responsible approach. The types of projects supported by the AFD to combat poverty and support economic growth are increasingly oriented toward sustainable development, as the development of renewable energies in Thailand and South Africa, where Calyon has positioned itself in projects alongside AFD.

We participated in a favorable environment, because this bond issue is consistent with AFD’s development strategy. Originally positioned in sub-Saharan Africa, the agency’s activities are now evenly split between Africa and the rest of the world. AFD would like to expand this mandate by completing other loan, subsidy and financing guarantee transactions in other regions. The AFD intends to broaden its geographical reach which would increase its financial activities. AFD should consequently be more present on the financial markets in euro or in the other currencies in coming years.