CEB issues GBP 400m 0.375% Benchmark due December 2025

9 March 2021

Transaction Highlights

  • Council of Europe Development Bank’s (CEB) first GBP benchmark transaction of 2021 
  • Complete CEB’s GBP curve by offering a point between the outstanding Jun-22 and Jul-27 benchmark
  • Broad investor distribution both from a geographical and investor type perspective

PARIS - On Tuesday 9th March 2021, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stab/stab/stab), priced a new £400m 5-year benchmark due 15 December 2025. The Joint Lead Managers on the transaction were BofA Securities, Citi and Deutsche Bank. This transaction adds a new 2025 maturity to the issuer’s sterling curve between 2022 and 2027, offering investors a new liquid pricing reference.

Following a relatively quiet issuance period in the GBP SSA market, CEB took advantage of favourable market dynamics and a clear issuance window to announce their new GBP 5yr benchmark.

The new mandate was announced on Monday, 8th March at 3.00pm London time and investors were invited to reflect Indications of Interest ("IOIs") at UKT+22bps area. On the back of constructive feedbacks overnight, CEB released guidance at UKT+22bps area on Tuesday, 9th March at 7.55am London time.

The orderbook quickly attracted a number of high quality investors, enabling the issuer to release a first update at 8.53am London time, showing an unchanged spread guidance and books above £270m (excl. JLM). The second update, about an hour later, allowed the issuer to set spread at UKT+22bps on the back of a £310m orderbook (Excl. JLM).

Momentum continued to build, and CEB was finally able to launch the transaction at 10.50am London, with a size set at £400m. Pricing occurred shortly after 12.10pm London time with an annual coupon of 0.375%. 

Investor distribution

 By Geography

Europe (ex. UK) 47 %

UK 40%

Asia 13%

By Investor Type

Bank Treasury 55%

Central Bank/Official Institution 38%

Asset Managers 7%

Full technical details 

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 stable 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.