CEB issues EUR 1bn 0% Benchmark due January 2031

12 janvier 2021

Transaction highlights: 

  • CEB’s first benchmark transaction of 2021
  • Record breaking orderbook, largest for CEB public benchmark transaction
  • The bond was priced at MS-14bps, 3bps tighter than initial guidance and the tightest ever print versus its secondary curve, at a yield of -0.332% and a spread of 14.6bps above the DBR 0% Feb 2031.

PARIS  - On Tuesday 12 January 2021, the Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stab/stab/stab), priced a EUR 1bn “no-grow” 10-year benchmark due January 2031. The Joint Lead Managers on the transaction were BNP Paribas, Deutsche Bank, Goldman Sachs Bank Europe and HSBC. The transaction represents CEB’s first benchmark outing of 2021.

Taking advantage of favourable market conditions for EUR SSA, CEB announced the mandate for their new EUR 1bn “no-grow” 10-year benchmark on Monday 11th January 2021 shortly after 11:30am CET.

Following a stable market open the following day, orderbooks were opened at 9:00am CET with initial guidance at MS-11bps area.

Momentum grew rapidly in the European morning, allowing for the spread to be revised tighter to MS-13bps (+/-1bp) within the hour. Investor interest stood in excess of EUR 5.5bn (excluding JLM interest) at this stage. The final spread was set at MS-14bps on the back of a granular orderbook which stood north of EUR 6.5bn (excluding JLM interest) at 10:45am CET with books to close shortly after. The issuer achieved its largest ever orderbook for a public benchmark transaction.

The new CEB bond was priced at 2:20pm CET at MS-14bps, offering a yield of -0.332%, equating to a spread of 14.6bps over the DBR 0% Feb 2031.

Over 120 global investors placed orders in the 6x oversubscribed transaction. The high quality and diverse investor base is testament to CEB’s unique investor following. Banks took the lion share coming in at 47%, followed by asset managers at 35% of allocations. Looking at regional distribution, the benchmark saw a balanced mix across Europe, with the largest share allocated to Germany, Austria and Switzerland at 27%.

Investor distribution  

By geography

Ger/Aus/Switz 27%
France 17%
Other Europe 13%
Nordics 11%
Italy 10%
Benelux 5%
UK 7%
Spain 7%
Other 3%

By investor type

Banks 47%
Asset Managers 35%
Central Banks/Official Institutions 10%
Pension Funds/Insurance/Corp 5%
Other 3% 

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 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.