The social development bank in Europe


CEB issues a EUR 1 billion 5-year benchmark

17 May 2018

PARIS - On Thursday 17th May 2018, Council of Europe Development Bank (CEB), rated Aa1 St. / AA+ Pos. / AA+ St., launched a successful new EUR 1 billion 5-year benchmark via Commerzbank, J.P. Morgan, Natixis and SGCIB. 

The mandate for a EUR 1 billion 5-year benchmark was announced to the market at 8.00 am London time (BST) on Tuesday 17th May 2018, along with initial price thoughts of mid-swaps minus 23bp area. CEB took advantage of an improving market sentiment at opening after an eventful session driven by Italian political headlines the day before. 

The transaction gained good traction in the morning with solid interests coming from Fund Managers and Official Institutions entities. The orderbook grew steadily from the outset: a first update was sent at 10:20 am BST to set the spread at MS-23 bps, on the back of an orderbook in excess of EUR 700 million. At 10:45 am BST, investors were informed that the book would go subject at 11:15 am BST/ 12:15 am CET, which supported further momentum by gathering late orders. 

Final books closed at 11.15 am BST, in excess of EUR 950 million (excl. JLMs interests) with participation from 38 investors. The transaction attracted particularly strong interest from Fund Manager who took up 43% of the total allocation, banks accounted for 36% and FM 21%, highlighting CEB’s strong investor franchise in the Euro market. The transaction was priced at 12:40 pm BST and carries an annual coupon of 0.125%. At MS-23bp, this is equivalent to +23.9bp versus OBL 0% 14 Apr 2023.

Technical details on the transaction are available here.

Set up in 1956, the CEB (Council of Europe Development Bank) has 41 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, AA+ with Standard & Poor's, outlook positive and AA+ with Fitch 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