EUR1bn 2.875% Social Inclusion Bond Benchmark due March 2032

Paris - On Monday 17th March 2025, Council of Europe Development Bank (CEB), rated Aaa/AAA/AAA (all stable), priced a new EUR1bn 7-year Social Inclusion Bond (SIB) due 25th March 2032.

Highlights

• This transaction follows CEB’s inaugural GBP-denominated SIB issued in January 2025 and their AUD 550 million 5-year SIB in February, with the total volume of SIB bonds now standing at over EUR12bn equivalent. This transaction also marks CEB’s first EUR benchmark for 2025.
• There was strong investor interest for the transaction from the moment books opened on Monday 17th March, with demand for this 7-year SIB over €2.15bn when books closed.
• The quality of interest also supported a rare 3bps tightening from guidance, with the final spread set at MS+33bps.
• Socially Responsible Investors (SRI) provided very strong support with 87% of the issue allocated to such investors.

Deal details

• The mandate for CEB’s annual flagship EUR SIB 7-year benchmark was announced to the market at 09.10 CET on Monday 17th March, with the guidance of MS+36bps area announced simultaneously for this intra-day transaction.
• Though geopolitics had caused volatility in recent weeks, with defense spending and tariff measures taking market focus, the backdrop remained supportive for new supply.
• Investors evidenced strong demand for the transaction from the moment books opened, with an orderbook totaling over €2.25bn, including €150m JLM interest, when the first update was released to the market at 11.20 CET.
• The size was subsequently set at €1bn, aligned with CEB’s transaction aspirations, and the high quality of investor interest allowed guidance to be revised to MS+34a (+/-1).
• Books closed at 11.45 CET with demand totaling over €2.15bn, including €50m JLM interest, and the spread on the transaction set at MS+33bps, an impressive 3bps tightening from guidance levels.
• The transaction was priced at 14.35 CET, with a coupon of 2.875%, a re-offer price of 99.750% and a re-offer yield of 2.915%. The transaction priced with a spread of +33 over the 0% DBR February 2032.
• Over 50 accounts participated in the transaction with broad diversification among investor geography and type. Investors based in France took 34% of the transaction, followed by Benelux investors at 26% and Swiss / Austrian investors at 12%. UK, Southern Europe and Nordic investors accounted for 7% each, Germany 4% and Asia 2%.
• Banks accounted for just over half of the transaction at 53%. CB/OIs took 33% with Asset Managers taking 12%. Insurance and Pension Funds took 2%.
• There was a large share of Socially Responsible Investors (SRI) in the transaction, with 87% of the issue allocated to such investors.

Distribution statistics

By geography:
France: 34%
BeNeLux: 26%
Austria/Switzerland: 12%
Nordics: 7%
UK/Ireland: 7%
Italy/Portugal/Spain: 7%
Germany: 4%
Asia: 2%
Others: 1%

By investor type
Banks: 53%
CB/OI: 33%
AM: 12%
Ins/PF: 2%

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