CEB issues USD 1bn 0.875% Benchmark due September 2026

16 September 2021

  • Council of Europe Development Bank’s (CEB) largest USD benchmark transaction of 2021, following the $500m Social Inclusion Bond 3yr issued earlier in June
  • Extend CEB’s USD curve by offering a new longest tenor in Sep-26, (versus Feb-25 previously)
  • USD joint-tightest Supra & Agencies spread to Libor swap since 2015 in the 5yr tenor

PARIS - On Wednesday 15th September 2021, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stab/stab/pos), priced a new $1bn 5-year benchmark due 22 September 2026. The Joint Lead Managers on the transaction were Barclays, BofA Securities, J.P. Morgan and RBC Capital Markets. This transaction adds a new 2026 maturity to the issuer’s dollar curve, offering investors a new reference in the 5yr tenor.

Council of Europe Development Bank took advantage of a strong backdrop in the USD SSA primary market and a clear issuance window to announce their new USD 5yr benchmark.

The new mandate was announced on Tuesday, 14th September at 1.30pm London time and investors were invited to reflect Indications of Interest ("IOIs") at MS-1bps area for a USD 1bn “no grow” transaction. With lower than expected US CPI figures leading to a more risk off tone, CEB released guidance at MS-1bps area on Wednesday, 15th September at 8.00am London time.

The orderbook attracted a number of high quality investors, enabling the issuer to release a first update at 11.00am London time, with an unchanged spread guidance and books above $1.15bn (excl. JLM interest). Final book in excess of $1.3bn allowed the issuer to launch the transaction at MS-1bps, the joint-tightest Supra & Agencies spread to Libor swap since 2015 on the 5yr tenor.

Pricing took place shortly after 3.00pm London time. The new bond offered a 0.890% re-offer yield and an annual coupon of 0.875%. In terms of investor demand, the transaction garnered significant interest from Central Banks/Official Institutions (48%) and Bank/Bank Treasuries (42%). Similarly, geographic distribution was evenly split across the Americas (37%), EMEA (33%) and Asia (30%).

Investor Distribution
By Geography
Asia: 37%
EMEA: 33%
Americas: 30%

By Investor Type
Central Bank/Official Institution: 48%
Banks & Bank Treasuries: 42%
FM/Ins/PF: 10%

Full press release


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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