2023-08-25 13:12:29
The one-year state bond, which will be issued on September 4, has already raised four billion euros, the Federal Debt Agency announced on Friday noon. The number of people who have already subscribed since the start of the campaign on Thursday is estimated at 100,000.
The amount of State bonds subscribed via the thirteen banks that offer them amounts to 2.1 billion euros, while that collected by the agency itself via the Ledger service reaches 1.9 billion. A figure to be taken with caution, according to Jean Deboutte, director of the agency, because there might be duplicates. The State Bond has a duration of one year and a rate of 2.81%. The amount raised is therefore around 4 billion, a “very good result”, according to Jean Deboutte.
Friday noon, 56,532 subscriptions had been made via the Great Books service and their total number is estimated at 100,000. The average amount per subscription is around 33,000 euros. “It’s possible that the first day was the biggest in terms of subscriptions, but we don’t see any slowdown so far.”, added the director of the federal agency. “We may not raise four billion euros a day, but a lot is possible. Eight, nine or ten billion euros in total, why not?
A government note is normally issued quarterly and a new one will therefore be issued in December. However, its duration remains to be determined. “There is no guarantee on this. But the one-year maturity is now part of our range”Mr. Deboutte said, assuming that a new one-year State Note would probably once more benefit from a favorable rate.
With this state bond, the federal government hopes to stimulate competition, encourage banks to raise their interest rates but also send a positive signal to the financial markets. Subscriptions are still possible with the Agency until August 31 and with banks until September 1. The final result will be announced on September 4.
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