New CEB EUR 1 Billion 0.625% January 2029 Benchmark Notes

PARIS -

Deal Summary

• On Wednesday 23rd January 2019, Council of Europe Development Bank, rated Aa1 (stable) / AA+ (positive) / AA+ (stable), priced a EUR 1 billion 10-year benchmark jointly lead managed by BofA Merrill Lynch, Crédit Agricole CIB, HSBC and TD Securities.
  
• On Tuesday 22nd at 11.40am London time, CEB took advantage of a clear issuance window and positive momentum from recent 10yr deals to announce the mandate for its first EUR benchmark of the year following its highly successful GBP benchmark issued two weeks prior.
  
• The following morning the market opened on a constructive tone, and initial price guidance of mid-swaps -3bps area were released to the market, offering an approximate 3bps new issue concession to investors versus the issuer’s and relevant peers’ secondary curves.
  
• Momentum was strong from the outset, and in just over one hour books had grown in excess of EUR1.25bn (excluding Joint Manager Lead interest), allowing the issuer to revise price guidance to MS-4bps area.
  
• Investor interest continued to build throughout the morning session, and 40 minutes later the spread was set 2bps tighter than initial price guidance at MS-5bps, with books closing shortly thereafter.  
  
• The orderbook peaked in excess of EUR 2bn composed of 71 investors, COE’s largest ever order book for a EUR transaction. The final order book was in excess of EUR 1.8bn, highlighting the issuer’s loyal and growing investor following in the EUR market.
  
• The final allocated order book was well diversified geographically across all European regions. Bank treasuries accounted for the largest share of demand (62%), while strong interest also came from the fund manager community (23%).

Investor breakdown

By investor type
Banks: 62%
FM: 23%
CB/OI: 8%
PF/Ins: 6%
Others: 1%

By region
France: 43%
UK: 20%
Germany/Austria/Switzerland: 15%
Benelux: 15%
Italy/Spain: 4%
Asia: 3%