CEB issues GBP 400m 0.375% Benchmark due December 2025

9 mars 2021

Transaction Highlights

  • Council of Europe Development Bank’s (CEB) first GBP benchmark transaction of 2021 
  • Complete CEB’s GBP curve by offering a point between the outstanding Jun-22 and Jul-27 benchmark
  • Broad investor distribution both from a geographical and investor type perspective

PARIS - On Tuesday 9th March 2021, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stab/stab/stab), priced a new £400m 5-year benchmark due 15 December 2025. The Joint Lead Managers on the transaction were BofA Securities, Citi and Deutsche Bank. This transaction adds a new 2025 maturity to the issuer’s sterling curve between 2022 and 2027, offering investors a new liquid pricing reference.

Following a relatively quiet issuance period in the GBP SSA market, CEB took advantage of favourable market dynamics and a clear issuance window to announce their new GBP 5yr benchmark.

The new mandate was announced on Monday, 8th March at 3.00pm London time and investors were invited to reflect Indications of Interest ("IOIs") at UKT+22bps area. On the back of constructive feedbacks overnight, CEB released guidance at UKT+22bps area on Tuesday, 9th March at 7.55am London time.

The orderbook quickly attracted a number of high quality investors, enabling the issuer to release a first update at 8.53am London time, showing an unchanged spread guidance and books above £270m (excl. JLM). The second update, about an hour later, allowed the issuer to set spread at UKT+22bps on the back of a £310m orderbook (Excl. JLM).

Momentum continued to build, and CEB was finally able to launch the transaction at 10.50am London, with a size set at £400m. Pricing occurred shortly after 12.10pm London time with an annual coupon of 0.375%. 

By Geography

Europe (ex. UK) 47 %

UK 40%

Asia 13%

By Investor Type

Bank Treasury 55%

Central Bank/Official Institution 38%

Asset Managers 7% 

Full technical details

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.