Bond Agence Française du Développement 3.75% ( FR001400KR43 ) in EUR
Issuer | Agence Française du Développement |
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ISIN code |
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Interest rate | 3.75% per year ( payment 1 time a year) |
Maturity | 20/09/2038 |
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Minimal amount | / |
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Next Coupon | 20/09/2025 ( In 51 days ) |
Detailed description |
The Agence Française de Développement (AFD) is a public institution that finances development projects in developing countries and French overseas territories, focusing on sustainable development, climate action, and global governance. Analysis of the Agence Française de Développement's FR001400KR43 Euro-Denominated Bond Issuance The financial markets are currently presenting an interesting fixed-income instrument: a bond issued by the Agence Française de Développement (AFD), identifiable by its unique ISIN code FR001400KR43. This particular debt security, denominated in Euros (EUR) and currently trading at 100% of its nominal value on the market, underscores its alignment with prevailing market conditions for instruments of comparable risk and duration. The Agence Française de Développement (AFD) is a public financial institution that implements France's development policy. Operating under the joint supervision of the French Ministries of Economy and Finance, and Foreign Affairs, AFD finances, supports, and accelerates transitions towards a more resilient and equitable world. Its mandate involves a wide array of activities, including funding projects in French overseas territories, emerging economies, and developing countries, thereby promoting sustainable development, combating climate change, and strengthening social ties. As a state-owned entity, AFD benefits from the implicit and often explicit backing of the French Republic, which typically translates into a strong credit rating for its debt instruments, making them highly attractive to a diverse range of institutional investors seeking stable and secure public sector exposure. The agency raises funds on international capital markets, through issuances like this bond, to finance its various development and solidarity initiatives worldwide. Delving into the specifics of the FR001400KR43 bond, it features an annual fixed interest rate, or coupon, of 3.75%, providing a predictable income stream to investors paid once a year. The bond has a relatively long maturity date of September 20, 2038, positioning it as a long-term investment vehicle suitable for portfolios aiming for extended duration exposure and capital preservation over a significant time horizon. Its issuance country, France, further reinforces its connection to a major Eurozone economy with a robust legal and financial framework. The current market price of 100% indicates that the bond is trading at par, implying that its coupon rate is well-aligned with the current market's required yield for an instrument of this credit quality and tenor, or that it was issued at this price, making its yield-to-maturity approximately 3.75% for an investor purchasing it at this price and holding it until maturity. This offering from the Agence Française de Développement is particularly appealing to institutional investors, pension funds, and asset managers looking for stable, long-term fixed-income opportunities underpinned by the high creditworthiness associated with a French public sector entity. In summary, the FR001400KR43 bond from the Agence Française de Développement represents a significant financial instrument, combining a competitive annual coupon with the strong, implicitly sovereign-backed credit profile of its issuer, making it a compelling option for investors focused on stability and long-term returns within the European fixed-income market. |