Barclays Capital, BNP Paribas, Morgan Stanley and Natexis-Banques Populaires have been mandated by t...
Barclays Capital, BNP Paribas, Morgan Stanley and Natexis-Banques Populaires have been mandated by the French government to launch a government bond linked to the Euro area consumer price index.
The fund invests in bonds known as OATs which are indexed on eurozone prices with a fixed real rate. The fixed real rate is due to daily indexation calculated according to the harmonised index of consumer prices for the eurozone, excluding tobacco.
The products are designed to offer bondholders protection against inflation. The issue comes on the back of the first bond linked to European inflation last year. The bond will mature on 25 July 2032. The length of time responds to investor demand for high quality long bonds.
This type of asset is popular among investors who aim to protect purchasing power of their investments, to improve their matching liabilities or to diversify their portfolio.
The volume and diversity of subscribers confirms the appeal of French government securities. In France, bonds worth E1.06bn (34% of sales) have been sold. In the euro market excluding France E0.99bn (32%) have been sold.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected