Bloomberg News

Belgium to Sell Three New Benchmark Bonds in 2013, Agency Says

November 15, 2012

Belgium plans to sell three new benchmark bonds in 2013 as it seeks to maintain issuance at the same level as this year, according to Anne Leclercq, director for treasury and capital markets at the Belgian debt agency.

“Next year’s issuance will probably be around the same as this year,” Leclercq said in an interview in Brussels last week. “We will sell three new benchmark bonds. A new 10-year bond, probably a new five-year and a new longer-maturity bond, probably in the 15-year or 30-year sector.”

“We will keep the final auction of this year,” Leclercq said in an interview on Nov. 9. “That will give us the possibility of pre-financing for next year.”

Belgium is taking advantage of record-low borrowing costs to sell more longer-maturity debt this year than it originally planned. With one more regular auction scheduled for Nov. 26, the country has already surpassed its issuance target of 38.25 billion euros ($48.9 billion) for 2012.

The Belgian 10-year yield fell one basis point, or 0.01 percentage point, to 2.26 percent at 3:12 p.m. London time after dropping to 2.232 percent on Nov. 13, the lowest since Bloomberg began collecting data on the securities in 1993.

Citigroup Inc. strategists predict the nation will raise 3 billion euros at the November auction. The debt agency sold 1.26 billion euros of 10-year bonds on Oct. 29 at an average yield of 2.418 percent, the lowest since the euro was introduced in 1999.

Belgium will probably raise a total of 45.2 billion euros this year through its financing programs including bonds and other debt instruments, Jean Deboutte, director of strategy and risk management at the Belgian debt agency, wrote by e-mail today. The agency “remains flexible,” he said.

To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net


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