News
CEB issues USD 1bn 3.625% 3-year Global Social Inclusion Bond Benchmark
05 May 2025
Highlights
- The transaction gathered a final orderbook above USD 1.8 billion despite a very busy primary market.
- The deal demonstrated robust demand and high quality, receiving strong support from a diverse array of top tier investors. Notably central banks/official institutions accounted for 69% of the allocations.
- The new 3-year priced at SOFR MS+36 bps (UST+7.2bps equivalent), tightening 1bp during execution.
- Today’s transaction brings CEB’s combined 2025 Social Inclusion Bond issuance to a 57% share of the total Funding amount issued in 2025 YTD.
Deal details
- The mandate for this USD Global Social Inclusion Bond benchmark was announced to the market on Tuesday 30th April at 13.00 CET with IPTs of SOFR MS+37bps area.
- The transaction met with strong demand from the outset and by the following morning at 08.54 CET, indications of interest reached more than USD 1 billion (excl. JLM interest). Books officially opened with spread guidance of SOFR MS+37bps area.
- By 11.17 CET, books reached over USD 1.6 billion (Including USD 100 million JLM Interest) allowing the spread to be set at SOFR MS+36bps and the size of the transaction at USD 1 billion.
- Final books closed in excess of USD 1.8 billion (excl. JLM interest) with the transaction receiving robust demand from 44 investors.
- The new line priced at 15.26 CET, offering a coupon of 3.625% and a semi-annual yield of 3.691%, equivalent to a re-offer price of 99.814% and a spread of 7.2bps over the UST 3.75% due April-2028.
- By geographic distribution, the majority of allocations went towards the EMEA region (60%), followed by the Americas (20%) and Asia (20%).
- In terms of investor type, Central Banks & Official Institutions were the largest investor component (69%), followed by Banks (22%), Fund Managers (7%) and Other (2%).
Distribution statistics
By geography:
Americas: 20%
Asia: 20%
EMEA: 60%
By investor type
CB/OI: 69%
Banks: 22%
Fund Managers: 7%
Other: 2%
For full technical details of the transaction, please click here.
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.