CEB issues a USD 1 billion five-year benchmark
6 février 2018
PARIS - On Tuesday 6th February 2018, Council of Europe Development Bank (CEB), rated Aa1/AA+/AA+ (stable/positive/stable), priced a US$1bn “no-grow” 5-year Global benchmark, joint lead managed by Goldman Sachs, HSBC, Nomura and TD Securities. The transaction represents CEB’s first US$ Global outing of 2018, following a successful outing in EUR. The new benchmark extends CEB’s USD curve, offering investors a new liquid pricing reference.
Following a quiet week in the SSA Primary Markets with the FOMC meeting on Wednesday 31st January and NFP release on Friday 2nd February, CEB announced the mandate for a US$1bn no-grow 5-year Global early on Monday 5th to secure an issuance window, in the expectation of competing supply ahead of the Chinese New Year Holidays.
Initial Price Thoughts (“IPTs”) of mid-swaps +14bps area were released at 12:30pm London time with the simultaneous collection of Indications of Interest (“IOIs”). Despite significant volatility in the broader macro markets, the transaction garnered demand from the outset, especially from the Bank Treasury community, underscoring CEB’s status as a safe haven asset for global investors.
With Indications of Interest standing in excess of US$1.9bn (excluding JLM interest), the syndicate tightened Price Guidance to mid-swaps +12bps area at Books Open on Tuesday 6th. Orderbook momentum continued during the European morning, supported by further high quality central bank orders, and it was announced at 9.25hrs London that European Books would go subject at 9.45hrs London. Soon thereafter, the syndicate further revised the final spread to midswaps +11bps, with the demand in excess of US$2.3bn for the US$1bn no-grow transaction.
The new CEB 5-year Global was priced at 15:45hrs London at mid-swaps +11bps, equating to a +21.8bps spread vs the 2.375% UST maturing January 2023.
With very little price sensitivity in the orderbook despite the 3bps spread tightening, CEB garnered demand from a wide range of global investors, with over 65 separate orders. The quality of the transaction was underscored by the high proportion of Bank Treasury (42.2%) and Central Bank (41.4%) tickets.
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.