The CEB launches EUR 1 billion 10-year benchmark

2 June 2015

PARIS - On June 2, the Council of Europe Development Bank (CEB,) rated Aa1/AA+/AA+, successfully launched and priced a new EUR 1bn 10-year benchmark due on 9 June 2025. 

This is the issuer’s first EUR benchmark transaction this year and the first since April 2014, following a 4-year GBP transaction in February and a 5-year USD benchmark in March. 

The issuer decided to take advantage of the short window ahead of the ECB on Wednesday, the German holiday on Thursday and US payrolls on Friday to avoid the potential EUR supply the following week. Crédit Agricole, Goldman Sachs International, HSBC and Morgan Stanley were mandated as joint lead managers on the transaction. 

The mandate for a EUR 1bn (no grow) 10-year EUR benchmark was announced at 8.15am London time and books were formally opened with a guidance of MS-16bps area. 

The spread was set at MS-16bps after 2 hours of bookbuilding with orders in excess of EUR 850mm. After the spread was set, the orderbook continued to grow with some last minute high quality orders and final books closed in excess of EUR 1.1bn. 

The book was highly granular, with close to 40 accounts participating in the transaction, highlighting CEB’s strong investor franchise in the Euro market despite volatile market conditions.

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.