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CEB issues A$250m 2.45% Kangaroo Benchmark due February 2027

18 février 2022

Transaction highlights: 

  • Council of Europe Development Bank’s (CEB) strategic return to the Kangaroo market
  • Successfully re-engaging a broad spectrum of A$ investors both domestically and offshore
  • Offering investors a fresh point of liquidity, and follows on from successful A$300mn 3-year in September 2021

PARIS - On Friday 18th February 2022, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stab/stab/pos), priced a new A$250m 5-year Kangaroo transaction due 25 February 2027. The Joint Lead Managers on the transaction were ANZ, J.P. Morgan and TD Securities. 

This transaction adds a new benchmark reference point on CEB’s Kangaroo curve, following on from its $A300mn 3yr transaction last September. 

CEB moved swiftly to proceed with the project amidst a busy Kangaroo market, whilst also successfully navigating around a volatile backdrop driven by geopolitical tensions and inflationary concerns. 

The new mandate was announced on Thursday, 17th February at 12.pm Sydney time with spread guidance released simultaneously at S/Q ASW+28bps area for an “A$ Benchmark” transaction. 

The orderbook attracted a number of high-quality investors throughout the European and Americas sessions, allowing the Syndicate to release a book update on Friday 18th of over A$210m (incl. 70m JLM) at 10am Sydney.  

With a final orderbook over A$270m (incl. 70m JLM), the deal size was set at A$250m. Pricing took place shortly after 2.45pm Sydney time. The new bond offered a 2.4725% re-offer yield and a semi-annual coupon of 2.45%.

Investor distribution  

By geography

Domestics: 33%
EMEA: 17%
Asia: 46%
Americas: 4%

By investor type

Banks & Bank Treasuries: 32%
AM/Ins/PF: 22%
Central Bank / Official Institutions: 46%

Full technical details of the transaction

Fondée en 1956, la CEB (Banque de Développement du Conseil de l'Europe) compte 42 États membres, dont 22 pays d'Europe centrale, orientale et du Sud-Est formant les pays cibles de la Banque. En tant qu'instrument majeur de la politique de solidarité en Europe, la Banque finance des projets sociaux en mettant à leur disposition des ressources levées dans des conditions reflétant la qualité de sa notation (Aa1 auprès de Moody's, perspective stable, AAA auprès de Standard & Poor's, perspective stable, AA+ auprès de Fitch Ratings, perspective positive et AAA* auprès de Scope Ratings, perspective stable). Elle accorde des prêts à ses États membres, à des établissements financiers et à des autorités locales pour le financement de projets dans le secteur social, conformément à son Statut.
*non-sollicité

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