CEB issues EUR 1 billion 2.750% bond benchmark due June 2035

Highlights

• On Thursday 12 June 2025, Council of Europe Development Bank (CEB), rated Aaa/AAA/AAA (all stable), priced a new EUR1 billion 10-year benchmark due 19 June 2035.
• This bond represents the first 10-year Euro benchmark for CEB in 2025.
• The transaction extends CEB’s EUR curve by offering a new on-the-run 10-year reference.
• It attracted strong investor interest, with final order book of over €3.5 billion, representing the CEB’s largest EUR order book since 2021, and its second largest order book ever for a 10-year EUR benchmark.
• The quality of interest also supported 3bps tightening from guidance, with the final spread set at MS+37bps. As testament to the high-quality, granular final order book, CEB achieved this strong result with minimal new issue concession.

Deal details

• The mandate for CEB’s EUR 10-year benchmark was announced to the market at 11:15 CET on Wednesday 11 June.
• On the back of a supportive market backdrop, CEB released initial guidance at MS+40 area on Thursday 12 June at 8:55 CET.
• The transaction attracted strong investor demand from the outset, including among Joint Lead Managers: orderbooks had totalled over €3.4 billion, including €550 million JLM interest, when the first update was released to the market at 10:37 CET. Size was set at €1 billion, aligned with CEB’s transaction aspirations, and the spread was set 3bps inside initial guidance at MS+37bps.
• Books closed in excess of €3.5 billion, including €550 million JLM interest, showing the strength of the orderbook with the book size and quality holding in spite of 3bps tightening.
• The transaction was priced at 12:40 CET, with a coupon of 2.750%, a re-offer price of 98.987% and a re- offer yield of 2.868%. The transaction priced with a spread of +39.4 over the DBR 2 ½ 02/15/35.
• Over 70 accounts participated in the transaction with broad diversification in terms of investor geography and type. The bulk of the demand came from investors based in Europe with 78%, followed by Middle Eastern investors at 12% and Asian investors took 10%.
• Banks accounted for close to half of the transaction at 48%. CB/OIs took 26% while Asset Managers represented 24%.

Distribution statistics

Allocation by geography

Other Europe: 37%
Middle East: 12%
France: 11%
Nordic: 10%
Asia: 10%
Benelux: 8%
UK/Ireland: 6%
Germany/Austria: 6%

Allocation by investor type

Banks: 48%
CB/OI: 26%
Asset Manager: 24%
Others: 2%

For full technical details of the transaction, please click here.