CEB issues A$250m 2.45% Kangaroo Benchmark due February 2027

18 February 2022

Transaction highlights: 

  • Council of Europe Development Bank’s (CEB) strategic return to the Kangaroo market
  • Successfully re-engaging a broad spectrum of A$ investors both domestically and offshore
  • Offering investors a fresh point of liquidity, and follows on from successful A$300mn 3-year in September 2021

PARIS - On Friday 18th February 2022, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stab/stab/pos), priced a new A$250m 5-year Kangaroo transaction due 25 February 2027. The Joint Lead Managers on the transaction were ANZ, J.P. Morgan and TD Securities. 

This transaction adds a new benchmark reference point on CEB’s Kangaroo curve, following on from its $A300mn 3yr transaction last September. 

CEB moved swiftly to proceed with the project amidst a busy Kangaroo market, whilst also successfully navigating around a volatile backdrop driven by geopolitical tensions and inflationary concerns. 

The new mandate was announced on Thursday, 17th February at Sydney time with spread guidance released simultaneously at S/Q ASW+28bps area for an “A$ Benchmark” transaction. 

The orderbook attracted a number of high-quality investors throughout the European and Americas sessions, allowing the Syndicate to release a book update on Friday 18th of over A$210m (incl. 70m JLM) at 10am Sydney.  

With a final orderbook over A$270m (incl. 70m JLM), the deal size was set at A$250m. Pricing took place shortly after 2.45pm Sydney time. The new bond offered a 2.4725% re-offer yield and a semi-annual coupon of 2.45%.

Investor distribution  

By geography

Domestics: 33%
EMEA: 17%
Asia: 46%
Americas: 4%

By investor type

Banks & Bank Treasuries: 32%
AM/Ins/PF: 22%
Central Bank / Official Institutions: 46%

Full technical details of the transaction

Set up in 1956, the CEB (Council of Europe Development Bank) has 42 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook stable, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook positive and AAA* with Scope Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.

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