La banque du développement social en Europe


CEB issues a EUR 1 billion 5-year benchmark

17 mai 2018

PARIS - On Thursday 17th May 2018, Council of Europe Development Bank (CEB), rated Aa1 St. / AA+ Pos. / AA+ St., launched a successful new EUR 1 billion 5-year benchmark via Commerzbank, J.P. Morgan, Natixis and SGCIB. 

The mandate for a EUR 1 billion 5-year benchmark was announced to the market at 8.00 am London time (BST) on Tuesday 17th May 2018, along with initial price thoughts of mid-swaps minus 23bp area. CEB took advantage of an improving market sentiment at opening after an eventful session driven by Italian political headlines the day before. 

The transaction gained good traction in the morning with solid interests coming from Fund Managers and Official Institutions entities. The orderbook grew steadily from the outset: a first update was sent at 10:20 am BST to set the spread at MS-23 bps, on the back of an orderbook in excess of EUR 700 million. At 10:45 am BST, investors were informed that the book would go subject at 11:15 am BST/ 12:15 am CET, which supported further momentum by gathering late orders. 

Final books closed at 11.15 am BST, in excess of EUR 950 million (excl. JLMs interests) with participation from 38 investors. The transaction attracted particularly strong interest from Fund Manager who took up 43% of the total allocation, banks accounted for 36% and FM 21%, highlighting CEB’s strong investor franchise in the Euro market. The transaction was priced at 12:40 pm BST and carries an annual coupon of 0.125%. At MS-23bp, this is equivalent to +23.9bp versus OBL 0% 14 Apr 2023.

Technical details on the transaction are available here.

Fondée en 1956, la CEB (Banque de Développement du Conseil de l'Europe) compte 41 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, AA+ auprès de Standard & Poor's, perspective positive et AA+ auprès de Fitch 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.

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