The French Finance Ministry announced today that it is to issue the first ever long dated, 30 year Government Bond linked to the Eurozone inflation rate. It expects the bond to be particularly attractive to pension funds, life companies, and other institutions seeking long dated guaranteed return investments.
Francis Mer, minister of the Economy, Finance and Industry, has invited Barclays Capital, BNP Paribas, Morgan Stanley and Natexis – Banques Populaires to launch the new OAT, which is linked to the euro area consumer price index.
This issue builds on the first OAT linked to the consumer price index in the euro area, launched in October 2001. It shows France’s interest in expanding the indexed bond market, and the commitment of Agency France Trsor to ensure its liquidity. This bond will mature on 25 July 2032. The final issuing terms will be announced shortly.