France maintains its 2022 lending plans unchanged despite the larger-than-expected deficit, and will consider innovating with an inflation-linked green bond market, the debt management agency said.
Agence France Tresor said it expected to issue 260 billion euros in medium- and long-term bonds – net of acquisitions – for a third year, unchanged from plans announced in September.
He also said he would use the funds available in the ministry’s account to cover a larger-than-expected deficit in September.
The deficit stands at 155.1 billion euros, higher than the 143.4 billion euros due to measures announced in September to mitigate the blow from the higher energy world and the new long-term investment plan.
Among the new bonds it has in the pipeline, AFT stated that it plans to issue medium-term bonds with maturities of 3 and 5-6 years.
For long-term bonds, it intends to issue two 10-year and one 15-year bond of 20-30 years if market conditions are right.
With regard to inflation-linked bonds, AFT stressed that it could issue a new 30-year inflation-linked bond for the eurozone, and would go into exploratory work to add a 10-15 year green bond to the range of bonds linked to inflation.
France has pioneered the fast-growing green market for government bonds, and creating an inflation-linked one would make it the first country to do so.
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Source From: Capital
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