CEB issues new A$300m Kangaroo transaction due 8 October 2024

• The Council of Europe Development Bank’s (CEB) highly successful strategic “re-entry” kangaroo benchmark transaction
• Successfully re-engaging a broad spectrum of A$ investors both domestically and offshore
• Offering investors a fresh point of liquidity and paving the way for future issuance in Kangaroo format

PARIS – On Thursday, 30 September 2021, the Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stab/stab/pos), priced a remarkable new A$300m three-year Kangaroo transaction due 8 October 2024. The Joint Lead Managers on the transaction were Nomura, RBC Capital Markets, and TD Securities.

This transaction represents CEB’s first strategic Kangaroo benchmark since 2010 and marks a successful “re-entry” into the market. Re-engaging with a diverse set of investors both domestically and offshore, the CEB has notably repositioned its credit after a long hiatus away from the market and paved the way for future Kangaroo issuance.

The CEB took advantage of a strong backdrop in the SSA Kangaroo primary markets and moved quickly to secure a clear issuance window amid a busy new issue pipeline.

The new mandate was announced on Wednesday, 29 September, at 12:00 pm Sydney time with spread guidance released simultaneously at BBSW+10bps area for an “A$ Benchmark” transaction.

The orderbook attracted a number of high-quality investors throughout the European and Americas sessions, allowing the Syndicate to release a book update on Thursday, 30 September, of over A$260m (incl. 75m JLM) at 9:30 am Sydney time, and a deal size of A$300m minimum with the final spread set at BBSW+10bps.

Further momentum during the Sydney-time morning enabled a further book update of over A$340m. (incl. 75m JLM), with the final deal size set at A$300m. Pricing took place shortly after 4:30 pm Sydney time. The new bond offered a 0.6225% re-offer yield and a semi-annual coupon of 0.6%.

The transaction attracted a wide range of investors with domestic investors notably accounting for 45%, and with Europe, Middle East and Africa accounts taking 33%. In terms of investor type, bank treasuries took the lions share at 57%, with AM/PF/INS at 26%, and central banks/official institutions taking 17%.

Investor distribution 
By geography
Domestic investors 45%
Europe, Middle East, and Africa 33%
Asia 16%
Americas 6%

By investor type 
Banks/bank treasuries 57%
AM/Ins/PF 26%
Central banks/official institutions 17%