News
CEB issues EUR 1bn 0.250% Benchmark due January 2032
12 January 2022
Transaction highlights:
- Council of Europe Development Bank’s (CEB) first benchmark transaction of 2022
- The bond was priced at MS-13bps, at a very tight spread versus its secondary curve, at a yield of 0.253% and a spread of +33.8bps above the DBR 0% Aug 2031
- The transaction highlights CEB’s global reach amongst rare high quality accounts
PARIS - On Wednesday, 12th January 2022, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stable/stable/positive), priced a EUR 1bn “no-grow” 10-year benchmark due 19 January 2032. The Joint Lead Managers on the transaction were Barclays, BNP Paribas, Citi and Deutsche Bank. The transaction represents CEB’s first benchmark outing of 2022 and kick starts its funding programme.
Taking advantage of favourable market conditions for EUR SSA, CEB announced the mandate for its new EUR 10-year benchmark on Tuesday, 11th January 2022 shortly after 12:00pm CET.
The transaction was announced with a EUR 1 billion “no-grow” size, in line with the issuer’s previous EUR benchmark outings and offering a large benchmark line to the investor community.
At a reoffer spread of Mid-Swaps – 13 bps, the new 10-year benchmark priced through fair value and tightly to its peers. The attractive swap spread context in the Euro market allowed CEB to offer a spread of +33.8 bps above Bunds and positive yield to the investors. This contrasts to its last 10-year EUR outing in January last year where the new issue came with a spread of +14.6 bps.
Banks, central banks/official institutions and fund managers took to the transaction, allowing for a diverse distribution in the orderbook including Asia (27%), the Nordic region (24%) and Americas (22%). Additional demand came out of Europe.
Investor distribution
By geography
Asia: 27%
Nordics: 24%
Americas: 22%
Other Europe: 14%
Ger/Switz: 10%
UK/Ire: 3%
By investor type
Banks: 50%
Central Banks/Official Institutions: 25%
Fund Managers: 19%
Pension Funds/Insurance: 6%
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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Contact
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Adrian Kaeser/Anne Flori
+33 1 47 55 75 18/+33 1 47 55 57 88