CEB issues a EUR 1 billion ten-year benchmark
1 juin 2016
PARIS - On Wednesday 1 June, the CEB successfully launched and priced a new EUR 1 billion 10-year benchmark due 8 June 2026. This is the CEB’s first EUR benchmark transaction in 2016 and follows the USD 1 billion 5-year benchmark priced in March. It is also the CEB’s first EUR benchmark since June 2015, providing a new liquid reference point in the long-end maturity.
The CEB decided to take advantage of the short window ahead of the ECB meeting on Thursday and US nonfarm payrolls on Friday to avoid the potential volatility in the market. Citi, Goldman Sachs International, HSBC and SG CIB were mandated as joint lead managers on the transaction.
The mandate for a EUR 1 billion (no grow) 10-year EUR benchmark was announced at 12pm London time on Tuesday 31 May and initial price thoughts of mid-swaps (MS)-10bps area were released simultaneously. Books were officially opened on Wednesday at 8am London with an unchanged price guidance of MS-10bps area.
The orderbook grew steadily from the outset, allowing CEB to set the spread at MS-10bps after two hours of book-building. Final books closed at 12pm London and saw close to 30 accounts participating. The transaction witnessed particularly strong interest from bank treasuries and fund managers who took up nearly 90% of the total allocation, highlighting CEB’s strong investor franchise in the Euro market.
The deal was priced with a reoffer yield of 0.4245% and offered a limited new issued premium of ~2bps.
Following this transaction, the CEB has completed ~EUR 2.7 billion of its EUR 3.3 billion funding programme for 2016.
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 stable 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.