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Actualités et publications Actualités CEB issues EUR 1 billion 2.875% Benchmark due January 2033

Actualités

CEB issues EUR 1 billion 2.875% Benchmark due January 2033

11 janvier 2023

Transaction highlights: 

  • Council of Europe Development Bank successfully launches a EUR 1 billion 10-year benchmark amidst a busy EUR SSA pipeline, gathering a very high quality orderbook
  • The issuer’s first EUR benchmark of 2023 priced at Mid-Swaps +7 basis points, 1 basis point tighter from initial guidance and offering minimal new issue concession versus peers and its secondary curve 
  • The transaction comes at an important time for CEB, following the announcement of the Bank’s strategic framework 2023-2027, which includes a strengthening of the CEB’s capital base with a EUR 4.25 billion subscribed capital increase (EUR 1.2 billion paid-in)

PARIS  - On Monday, 10th January 2023, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (on review for upgrade/stable/positive), priced a EUR 1 billion “no-grow” 10-year benchmark due 17 January 2033. The Joint Lead Managers on the transaction were BofA Securities, Citi, Credit Agricole CIB and Deutsche Bank. The transaction represents CEB’s first benchmark outing of 2023 and kick starts its EUR funding programme under its EUR 7 billion Borrowing Authorisation for 2023.

Taking advantage of conducive market conditions for EUR SSA at the start of the year, CEB announced the mandate for its new EUR 10-year benchmark on Monday, 09th January 2023 shortly after 10:30am CET. 

The transaction was announced with EUR 1 billion “no-grow” language, in line with CEB’s previous 10-year benchmark outings. The new bond extends the Bank’s EUR curve and provides a new reference point to investors. 

On the back of high-quality investor engagement from the onset, a swift bookbuilding process led to books last seen over EUR 1.25 billion. This allowed CEB to set the spread 1 basis point tighter at Mid-Swaps + 7 basis points, +68.7 basis points above Bunds and offering a yield of 2.970% to the investors. 

The transaction saw strong participation by Asset Managers/Insurance/Pension Funds (39%) and Central Banks/Official Institutions (21%), particularly when comparing to other 10-year supranational supply so far this year. The lions share went to France (26%) and Germany (23%), driven in part by the attractive spread to Bunds and OATs. Distribution into Netherlands/Luxembourg (22%), Austria/Switzerland (12%), the Nordic region (7%) and the UK (6%) equally underpin the broad reach and appeal of CEB’s credit amongst SSA investors. 

Investor distribution  

By geography

France: 26%
Germany: 23%
Netherlands/Luxembourg: 23%
Austria/Switzerland: 12%
Nordics: 7%
United Kingdom: 6%
Other Europe: 2%
Asia: 1%

By investor type

Banks: 40%
AM: 24%
CB/OI: 21%
Ins/PF: 15%

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, on review for upgrade, AAA auprès de Standard & Poor's, perspective stable, AA+ auprès de Fitch Ratings, perspective stable 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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