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CEB issues new EUR 1 billion (no-grow) 0.05% benchmark due January 2030

14 January 2020

Transaction highlights

  • Council of Europe Development Bank’s (CEB) first benchmark transaction of 2020
  • Strong demand from high quality investor base, highlighting CEB’s status as a safe haven asset for global investors

PARIS - On Tuesday 14th January 2020, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stable / stable / positive), priced a EUR 1bn “no-grow” 10-year benchmark, joint lead managed by Barclays, Goldman Sachs International, Nomura and Societe Generale. The transaction represents CEB’s first EUR outing of 2020.

Following a strong week in the SSA primary markets with a number of issuers coming to the market, CEB announced the mandate for a EUR 10-year benchmark at 11:50hrs London on Monday 13th January to secure an issuance window, in the expectation of competing supply.

On Tuesday 14th January shortly before 08.00hrs London, books were officially opened and guidance of mid-swaps-9bps area was released simultaneously for a no-grow size of EUR 1 bn. Against a stable market backdrop, the transaction garnered demand from the outset, especially from the Bank Treasury community, underscoring CEB’s status as a preferred liquidity credit for global investors.

With orderbooks standing in excess of EUR 1.1bn, the syndicate immediately set spread at mid-swaps-9bps at 11.50hrs London.  Soon thereafter, it was announced that books would go subject at 11.30hrs London with orderbooks already in excess of EUR 1.25bn.

The new CEB 10-year EUR was priced at 12:50hrs London at mid-swaps-9bps, equating to a 30bps spread vs the DBR 0% maturing August 2029.

CEB gathered demand from a wide range of global investors, with over 38 separate orders and a book in excess of EUR 1.25bn. The quality of the transaction was underscored by the high proportion of Official Institutions (32%) and Banks 48%) tickets. 

Investor Distribution

By Geography

Asia 20%
Germany / Austria / Switzerland 19%
UK 16%
Other Europe 13%
France 12%
Benelux 10%
Americas 10%

By Investor Type

Banks 48%
CB/OI 32%
Asset Manager 12%
Other 8%

Full technical details of the transaction

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 (AA+ with Fitch Ratings, outlook positive, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, 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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