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CEB issues a USD 1 billion two-year global benchmark

10 May 2017

PARIS - On Wednesday 10 May 2017, Council of Europe Development Bank (CEB), rated Aa1 / AA+ / AA+ (all stable), launched a successful new US$ 1 billion 2-year Global benchmark via BNPP, Morgan Stanley, Nomura and SG CIB.  

The mandate for a USD 1bn (no grow) 2-year Global benchmark was announced to the market at 1.50pm London time on Tuesday 9 May 2017, along with initial price thoughts of mid-swaps minus 4bp area. The transaction gained good traction by London close with solid interest from Bank Treasury accounts, and saw further participation overnight with a number of high quality orders from Central Banks coming in. On the back of indications of interest in excess of USD 1 billion, books were officially opened on Wednesday 10 May at 8.10am London with an unchanged guidance of  MS-4bp area.  

The orderbook grew steadily from the outset, allowing CEB to revise the guidance to MS-5bp area after two hours of book-building. The solid demand and high quality of books allowed setting the spread at MS-6bp with investors’ interest amounting to more than USD 1.5 billion.  

Final books closed at 3.45pm London and saw 34 accounts participating. The transaction witnessed particularly strong interest from central banks who took up 67% of the total allocation, banks accounted for 23% and FM & Other for 10%, highlighting CEB’s strong investor franchise in the USD market.  

The transaction was priced shortly after 4.15pm London and carries a semi-annual coupon of 1.500%. At MS-6bp, which is equivalent to +19.75bp versus 2-year US Treasuries.

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 stable 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.

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