The social development bank in Europe

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CEB issues a new 1.125% £600m Benchmark due March 2022

10 January 2019

· CEB’s largest Sterling issuance to date
· Final orderbook in excess of £650 million

PARIS - On the 10th January 2019, CEB successfully priced a new £600 million Mar 2022 Benchmark, representing the issuer’s largest Sterling Benchmark transaction to date.

The new mandate was announced on Wednesday, 9th January, at 12.00pm London time with IPTs of UKT 4% March 2022 plus 48bps area. Indications of interest built steadily throughout the European afternoon with strong participation from European bank treasuries. 

Books officially opened on Thursday morning, just before 8:00am London time, with unchanged price guidance. The orderbook attracted very high quality investors from the onset, enabling the issuer to release a book update of £300 million before 9:00am London time and reaching £500 million within the hour.

The final spread was set at UKT 4% March 2022 plus 47bps and final books closed in excess of £650 million, with orders from 30 different accounts. This enabled the issuer to set the size at £600 million. 

The transaction was priced shortly after at 1:20pm London time with an annual coupon of 1.125% and a reoffer price of 99.669%, equating to a reoffer yield of 1.229%.

Investor breakdown

By investor type
Banks: 72%
Asset Manager: 16%
CB / OI: 12%

By region
Asia: 10%
EMEA: 90%

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 positive 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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