CEB issues USD 1 billion 3-year Bond
17 septembre 2019
PARIS - On Tuesday 17 September 2019, Council of Europe Development Bank (CEB), rated Aa1 / AAA / AA+ (stable/ stable/ positive), launched a successful USD 1 billion 3-year benchmark bond via BNP Paribas, Morgan Stanley, Nomura and RBC Capital Markets. This is the CEB’s second USD benchmark transaction in 2019, following its 5-year trade in February. The trade also brings CEB to 88% of its total funding programme for 2019.
The mandate for a USD 1bn (no grow) 3-year benchmark was announced to the market at 8:30 BST on Monday 16th September 2019, with IPTs of MS+12bps area announced shortly after at 13:51 BST. IOI’s grew steadily overnight and books were officially opened on Tuesday 17th September 2019 at 08:16 BST with a price guidance of MS+12bps area and IOI’s > USD 970mn. The transaction continued to gain good traction allowing a book update of > USD 1.35bn (incl. USD 50m JLM) and the spread to be set at MS+11bps at 09:34 BST, reflecting a 1bp tightening. By 12:00 BST books of > USD 1.4bn (incl. USD 50m JLM) were communicated to the market with books to close at 12:30 BST (Europe/Asia) and 08:30 EST (New York).
Books eventually closed with 39 accounts participating. The transaction was officially priced at 15:16 BST, with a coupon of 1.750%, a reoffer price of 100% and a reoffer yield of 1.750%. This transaction also priced incredibly tight on a spread to treasuries basis, at a final spread of 6.35bps.
The transaction witnessed particularly strong interest from Official Institutions who took up 43% of the total allocation, Banks accounted for 37% and Fund Managers/Insurance for 20%, highlighting CEB’s strong investor franchise globally. Investors were extremely diversified by region with EMEA taking the largest allocation at 60%, the Americas at 20% and Asia at 15%.
By investor type
CB / OI: 43%
Fund manager/Insurance: 16%
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.