CEB issues CHF 200m 6-year Benchmark 1.625% due 30 June 2029

5 June 2023

PARIS - On Friday, 2nd June 2023,  the Council of Europe Development Bank (“CEB”) rated Aaa (Moody’s) / AAA (S&P) / AA+ (Fitch) (stable/stable/positive) successfully launched a new 6-year CHF 200 million benchmark due 30 June 2029.

Key Highlights

  • This new issuance marks CEB’s return to the Swiss Franc market, after nearly 9 years since the last CEB CHF benchmark transaction in 2014, a 9-year CHF 225m bond which matured earlier this year 
  • The higher rate environment and the strong demand for high quality paper allowed CEB’s new transaction to record the tightest level 6-year issuance this year
  • Despite a late execution window in the week, CEB took advantage of a clear opportunity thanks to the improvement of the funding arbitrage, the strong primary market conditions for foreign SSA names and the general sentiment of lack of AAA supranational paper
  • The reengagement with the Swiss investor base was impressive and the prompt turnaround in the orderbook allowed CEB to upsize the transaction on two occasions, from a min CHF 100m to a final size of CHF 200m
  • The new bond was priced at a spread of 22bps below the SARON MS 6-year rate, implying a yield of 1.515% and a coupon of 1.625%, equivalent to a price of 100.626% 
  • Lead managers for this transaction were BNP Paribas and Commerzbank

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 (Aaa with Moody's, outlook stable, AAA with Standard & Poor's, stable outlook, 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.


Related links