CEB issues USD 1bn 4.625% 3-year Global Social Inclusion Bond Benchmark

Highlights

• The new 3-year priced at SOFR MS+24bps and UST +7.6bps, making this transaction both the tightest SOFR MS spread and US Treasury spread for a USD 3-year SSA syndication so far in 2024.
• This transaction gathered the largest-ever orderbook for a 3-year USD benchmark by CEB, with strong support from a diverse range of high-quality investors. This is also CEB’s second largest USD orderbook ever, following the USD 1.5bn 5-year Global issued in January 2024.
• This is CEB’s 18th Social Inclusion Bond issued to-date and the 5th issued in USD. Today’s transaction also brings CEB’s combined 2024 Social Inclusion Bond issuance to a record 40% share of the annual Borrowing Authorisation.
• Central Banks & Official Institutions strongly supported the deal, representing 71.7% of allocations.

Deal details

• The mandate for this USD Global Social Inclusion Bond benchmark was announced to the market on Monday 3rd June at 11.51 CET with IPTs of SOFR MS+26bps area.
• The transaction was met with strong demand from the outset and by the following morning at 09.02 CET, indications of interest had reached in excess of USD 2.5 billion (excl. JLM interest). Books officially opened with spread guidance of SOFR MS+25bps area. The size of USD 1 billion “Will Not Grow” was communicated at this time.
• By 10.29 CET, books had reached over USD 3.9 billion (excl. JLM interest), allowing the spread to be set at SOFR MS+24bps. Books for Asia and Europe closed at 11.00 CET and books for the Americas closed at 14.00 CET.
• Final books were in excess of USD 5.3 billion (excl. JLM interest), making this the largest-ever 3-year USD book for CEB. This is also CEB’s second largest USD orderbook ever after the USD 5-year Global benchmark issued in January 2024.
• The transaction priced at 15.50 CET, offering a coupon of 4.625% and a semi-annual yield of 4.644%, equivalent to a re-offer price of 99.947% and a spread of 7.6bps over the UST 4.500% due May-2027.
• The final orderbook was diverse and consisted of over 105 accounts across the globe.
• By geographic distribution, the majority of allocations went towards the EMEA region (59.0%), followed by the Americas (29.2%) and Asia (11.8%).
• In terms of investor type, Central Banks & Official Institutions took most of the allocations (71.7%), followed by Banks (22.2%), Fund Managers (5.7%) and Hedge Funds (0.4%).

For full technical details of the transaction, please click here.