05 Jun 2015 16:59

First issuance of an inflation-linked security under EMTN format

Yesterday, the Belgian Debt Agency has issued for the first time a Note which is linked to an inflation index.
This means that the investor receives yearly a coupon of interest on the nominal amount which is indexed on the basis of an inflation-index, in this case the Euro HCPI ex-tobacco. On the final maturity, the investor receives the indexed nominal amount so that he is reimbursed with the coupon but also with the inflation and measured according to this index on the maturity of the bond.

This applies to two issues in the framework of the Euro-Medium Term Notes Programme (EMTN) at 20 and 25 years respectively:
- For the 20 year segment, an amount of 150 million EUR has been issued with a coupon of 0.15%.
- For the 25 year segment, an amount of 150 million EUR has also been issued and the coupon is 0.25%. 

BNP Paribas Fortis was the dealer for both issues.

The amount issued in the framework of this EMTN programme amounts now to 3.05 billion EUR in 2015. In total, the Belgian Debt Agency has already realized long-term issues for an amount of 21.91 billion EUR which corresponds to 61.3% of the target for 2015.