Agence France Locale launches first bond
French local government funding agency Agence France Locale, whose shareholders are 100% French local authorities, has issued its first bond. “It is a seven year index linked bond,” the French financial magazine L’Agefi reported.
Founded in December 2013 and licensed since December 2014 as a specialised credit institution by the French banking regulator, AMF, the Agence France Locale intends to make its first loans to its members shortly after issuing its first bond.
The agency has been assigned a Aa2 (negative) long-term rating by Moody’s, that means one notch lower than the rating of the French state (Aa1, negative).
At present, the Agence France Locale includes 91 local authorities and expects to offer a funding alternative to local authorities with a market share of 25%.
The Agence France Locale aims to reach total AUM of €110m and currently holds €55m.
The governance of the agency is divided in two structures, Agence France Locale-Société Territoriale and Agence France Locale.
Agence France Locale – Société Territoriale, fully owned by French member local authorities represents the shareholders, sets strategic guidelines for the group, appoints the supervisory board of its subsidiary and manages the guarantee mechanism.
Its branch Agence France Locale works as a credit institution raising funds in capital markets and distributing amortizing loans to local authorities.