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Actualités et publications Actualités CEB issues USD 1 billion 3.625% Benchmark due January 2028

Actualités

CEB issues USD 1 billion 3.625% Benchmark due January 2028

20 janvier 2023

Transaction highlights: 

  • Council of Europe Development Bank successfully launches a USD 1 billion 5-year benchmark amidst a busy USD SSA pipeline, gathering a very high quality orderbook
  • The issuer’s first USD benchmark of 2023 priced at Mid-Swaps +41 basis points, offering minimal new issue concession versus peers and its secondary curve 
  • This transaction represents the longest tenor on the CEB USD curve, hence successfully extending the issuer’s curve
PARIS - On Thursday, 19th January 2023, Council of Europe Development Bank (CEB), rated Aa1/AAA/AA+ (on review for upgrade/stable/positive), priced a USD 1 billion “no-grow” 5-year benchmark due 26 January 2028

The Joint Lead Managers on the transaction were Barclays, BNP Paribas, Goldman Sachs Bank Europe SE, RBC Capital Management. The transaction represents CEB’s first USD benchmark of 2023.

The mandate for this benchmark bond was announced to the market on Wednesday, 18th January at 13:06 CET with IPTs of SOFR MS+41bps area.

IOIs grew in excess of USD700mm (including USD200mm JLM interest) overnight and guidance was set at SOFR MS +41bps area when books were officially opened on the morning of Thursday 19th January at 09:13 CET.

By 11:19 CET, books were over USD 1.2 billion (including USD 350mm JLM interest), and the CEB set the spread formally at SOFR MS+41bps area.

Books continued to grow, attracting a number of high-quality orders and closing over USD 1.6 billion (including USD 350mm JLM interest).

The transaction was priced at 15:45 CET, with a coupon of 3.625% (s.a.), a re-offer price of 99.792% and a re-offer yield of 3.671%. The transaction priced with a spread of +20.2bps over Treasuries.

Over 50 accounts participated in the transaction with remarkable participation from CB/OIs who took the lion’s share of the transaction (47%), which is quite noticeable given the tenor of the transaction. Banks and Bank Treasuries took 40% and finally Fund Managers, Insurances and Pension Funds were allocated 13% of the deal.

Investor demand came primarily from EMEA (66%), followed by Americas (27%) and Asia (7%).

Investor distribution  

By geography

EMEA: 66%
Americas: 27%
Asia: 7%

By investor type

CB/OI: 47%
Banks & Bank Treasuries: 40%
FM/Ins/PF: 13%

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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