By Marta Vilar – MADRID (Econostream) – Following is the full transcript of the interview conducted by Econostream on 28 April 2026 with Maric Post, Director of Treasury and Capital Markets of the Belgian Debt Agency.

Q: A few days ago, S&P Global Ratings downgraded Belgium’s credit rating from AA to AA-, which followed Moody’s downgrade from Aa3 to A1. The latter was the first downgrade in 15 years. Do you expect this to affect investor demand?

A: It is possible that it will affect demand but probably only marginally. For most investors we speak to, it doesn’t materially change how they trade Belgian debt. Investors tend to focus on the broader risk-return picture. In that context, the spreads versus other Eurozone countries had already adjusted ahead of the downgrades, and investors generally feel those levels accurately reflect the situation. So while there may be a limited negative impact, we believe it has largely already been priced in by the market.

Q: Do you see any practical implications from the downgrade?

A: No, not really.

Q: Your most recent syndication took place on February 4th, when you issued a new 30-year benchmark. How did that transaction go?

A: It was a very strong transaction and was very well absorbed by the market. There was significant appetite for a 30-year issue in the lead-up, and the deal was highly successful, with strong participation across investor groups. What stood out in particular was the strong involvement of central banks and official institutions—more than we would typically expect for such a long maturity.

Since then, geopolitical developments have dominated markets. Over the past two months, the long end of the curve has remained relatively well anchored, while the front end has sold off, with short-term rates rising significantly due to inflation expectations and anticipated central bank responses. This has led to a notable flattening of the curve. However, the 30-year point has remained relatively stable throughout.

Q: In your 2026 funding plan, you indicated plans to issue a new 10-year benchmark, a new 5-year benchmark, and a long-dated OLO. Only the 5-year benchmark remains outstanding. Have recent developments caused you to reconsider this?

A: No, the plan remains unchanged. We want to maintain issuance across different benchmark points on the curve, and we still expect the 5-year transaction to go ahead later this year.

Q: Can you give any indication of timing?

A: It’s too early to be specific. We need to monitor market conditions. Historically, our third syndicated transactions have taken place between March and September, and all options remain open. While volatility has eased somewhat, geopolitical risks—particularly the ongoing war in the Middle East—remain. We will wait for a suitable market window, whether that arises before or after the summer.

Q: Does the current volatile environment make an issuance in 2H 2026 more likely?

A: Not necessarily. In recent weeks, we have seen issuance windows open, including some very active periods. If such a window presents itself, we could proceed before the summer.

Q: Regarding size, you raised €8 billion and €6 billion in your first two syndications. What should the market expect for the third?

A: There has been a general trend toward larger deal sizes, in line with increased funding needs. For example, last year’s five-year transaction was €7 billion, and this year’s 10-year was €8 billion—the largest OLO syndication ever, matching the COVID-era deal in 2020. We don’t fix the size in advance, but we expect a benchmark-sized deal. In our case, in recent deals, that has typically ranged between €5 billion and €8 billion.

Q: You plan to issue €51.6 billion in OLOs this year. How will issuance be allocated over the remainder of the year?

A: We have already raised €24 billion, including yesterday’s auction. Excluding the upcoming syndication, around €20 billion remains to be funded. To achieve this, we will hold six or seven regular auctions, along with up to eight optional reverse inquiry auctions. Overall, the process will follow our usual funding approach.

Q: How is the current bond market environment influencing your strategy?

A: The main discussion concerns where on the curve we issue. The current rate environment has ended the long period of very low rates, raising questions about whether to shift issuance toward shorter maturities, given the steepness of the curve. Some issuers have done so, but we have decided to maintain a relatively long average maturity—around 10 years. This was one of the reasons for issuing the 30-year bond earlier this year. These discussions will continue annually. Given our already long maturity profile, we retain flexibility to adjust if needed. But for 2026, we are maintaining our current approach.

Q: Could this change in 2027?

A: It’s too early to say. Much depends on how yield levels and yield curves evolve. Curves are already relatively steep but could steepen further—or flatten again if rates decline and demand for duration increases. If steepness increases significantly, that could prompt a shift. Otherwise, only smaller year-to-year adjustments are likely, rather than a fundamental change.

Q: Which part of the curve is currently seeing the strongest demand?

A: It varies, but broadly speaking, the 10-year area—and slightly shorter maturities—has been consistently in demand. More recently, we have also seen interest around the 15-year segment.

Q: You plan to buy back €4.6 billion bonds maturing in 2027 and 2028. Are you targeting specific windows?

A: No. Primary dealers can access a buyback screen on the MTS platform, where we continuously quote prices. This provides a permanent opportunity for buybacks. We have already seen some volumes, including the March 2028 bonds, which we only began buying back in April.

Q: Your funding plan does not include a new green OLO this year. Could that change in 2027?

A: Yes, that is certainly an option. It will be discussed when we prepare the 2027 funding plan.

Q: What conditions would need to be met?

A: First, we must ensure sufficient eligible green expenditures—not just for one year, but sustainably over several years. That’s the key requirement. Investor interest in green OLOs remains strong, so from a market perspective, issuing another green bond would make sense if those conditions were met.

Q: Your funding plan also leaves room for reopening existing green bonds maturing in 2033 and 2039. Is that likely this year?

A: If there is demand from primary dealers, we can reopen these bonds through regular auctions or reverse inquiry auctions. Which bond is more likely depends entirely on market conditions—specifically, where dealers face short positions. It’s not something we can predict in advance.

Q: Last year, you mentioned that issuing in foreign currencies other than in USD was possible. Does that remain the case?

A: Yes, absolutely. Last year was quite successful, with over €3 billion equivalent issued in foreign currencies, including USD, GBP, and AUD. We continue to monitor opportunities and stand ready to issue when conditions are favorable.

Q: Are you seeing opportunities in any particular currency?

A: Opportunities do arise, although we always look for cost advantages relative to our euro curve. Recently, we have issued in AUD, where there has been good demand.