La banque du développement social en Europe

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CEB issues new EUR 1 billion (no-grow) 0.05% benchmark due January 2030

14 janvier 2020

Transaction highlights

  • Council of Europe Development Bank’s (CEB) first benchmark transaction of 2020
  • Strong demand from high quality investor base, highlighting CEB’s status as a safe haven asset for global investors

PARIS - On Tuesday 14th January 2020, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (stable / stable / positive), priced a EUR 1bn “no-grow” 10-year benchmark, joint lead managed by Barclays, Goldman Sachs International, Nomura and Societe Generale. The transaction represents CEB’s first EUR outing of 2020.

Following a strong week in the SSA primary markets with a number of issuers coming to the market, CEB announced the mandate for a EUR 10-year benchmark at 11:50hrs London on Monday 13th January to secure an issuance window, in the expectation of competing supply.

On Tuesday 14th January shortly before 08.00hrs London, books were officially opened and guidance of mid-swaps-9bps area was released simultaneously for a no-grow size of EUR 1 bn. Against a stable market backdrop, the transaction garnered demand from the outset, especially from the Bank Treasury community, underscoring CEB’s status as a preferred liquidity credit for global investors.

With orderbooks standing in excess of EUR 1.1bn, the syndicate immediately set spread at mid-swaps-9bps at 11.50hrs London.  Soon thereafter, it was announced that books would go subject at 11.30hrs London with orderbooks already in excess of EUR 1.25bn.

The new CEB 10-year EUR was priced at 12:50hrs London at mid-swaps-9bps, equating to a 30bps spread vs the DBR 0% maturing August 2029.

CEB gathered demand from a wide range of global investors, with over 38 separate orders and a book in excess of EUR 1.25bn. The quality of the transaction was underscored by the high proportion of Official Institutions (32%) and Banks 48%) tickets. 

Investor Distribution

By Geography

Asia 20%
Germany / Austria / Switzerland 19%
UK 16%
Other Europe 13%
France 12%
Benelux 10%
Americas 10% 

By Investor Type

Banks 48%
CB/OI 32%
Asset Manager 12%
Other 8%

Full technical details of the transaction

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 (AA+ auprès de Fitch Ratings, perspective positive, AAA auprès de Standard & Poor's, perspective stable et Aa1 auprès de Moody's, 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.

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