EBRD reports successful seven-year Global Bond issue
This transaction responds to global investor demand for the highest quality fixed-income investments, against the continued overall flight to quality and the backdrop of appetite for yield and widening swap spreads at the time of announcing the trade.
Demand for the triple-A borrower’s latest issue was significant at the indicated price of five basis points above mid-swaps, with no pushback on level from accounts. This enabled EBRD to price its deal flat to Asian Development Bank’s seven-year Global Bond, flat to African Development Bank’s five-year deal and with only a small curve concession to IADB’s five-year Global Bond from earlier this year.
“This transaction is yet another affirmation of the high regard in which EBRD is held. We have recently received confirmation by the Rating Agencies of our AAA ratings and “stable” outlooks, which S&P, under its new methodology, has noted would also apply on a standalone basis. The evidence of this transaction demonstrates that investors continue to appreciate EBRD as a strong and stable credit” said the EBRD’s Deputy Treasurer and Head of Funding, Isabelle Laurent.
The breadth and diversity of the order book, with an emphasis on the highest quality investors, suggest that many accounts continue to see value in Sovereign/ Supranational/ Agency assets of the calibre of the EBRD.
The transaction was announced during the course of the Asian morning, with books formally opening at approximately 8:00 AM UK time on Monday 28 January. The book built steadily to 700 million USD by the New York open, and closed at 3.45 PM UK time. Central bank and other official institutions played a key role in the transaction, with several Bank Treasuries also tempted further out the curve by the uniqueness of this high calibre issuer in this tenor.
This transaction was joint-lead managed by J.P. Morgan, HSBC, Morgan Stanley, and RBC Capital Markets.
The bonds were issued at a price of 99.496 per cent and pay a coupon of 1.500 per cent per annum, through semi-annual payments. This gives investors a yield of 1.575 per cent (s.a.), equivalent to a spread of +20.1 basis points above the underlying US Treasury bond.
Demand for the triple-A borrower’s latest issue was significant at the indicated price of five basis points above mid-swaps, with no pushback on level from accounts. This enabled EBRD to price its deal flat to Asian Development Bank’s seven-year Global Bond, flat to African Development Bank’s five-year deal and with only a small curve concession to IADB’s five-year Global Bond from earlier this year.
“This transaction is yet another affirmation of the high regard in which EBRD is held. We have recently received confirmation by the Rating Agencies of our AAA ratings and “stable” outlooks, which S&P, under its new methodology, has noted would also apply on a standalone basis. The evidence of this transaction demonstrates that investors continue to appreciate EBRD as a strong and stable credit” said the EBRD’s Deputy Treasurer and Head of Funding, Isabelle Laurent.
The breadth and diversity of the order book, with an emphasis on the highest quality investors, suggest that many accounts continue to see value in Sovereign/ Supranational/ Agency assets of the calibre of the EBRD.
The transaction was announced during the course of the Asian morning, with books formally opening at approximately 8:00 AM UK time on Monday 28 January. The book built steadily to 700 million USD by the New York open, and closed at 3.45 PM UK time. Central bank and other official institutions played a key role in the transaction, with several Bank Treasuries also tempted further out the curve by the uniqueness of this high calibre issuer in this tenor.
This transaction was joint-lead managed by J.P. Morgan, HSBC, Morgan Stanley, and RBC Capital Markets.
The bonds were issued at a price of 99.496 per cent and pay a coupon of 1.500 per cent per annum, through semi-annual payments. This gives investors a yield of 1.575 per cent (s.a.), equivalent to a spread of +20.1 basis points above the underlying US Treasury bond.
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EBRD, Global Bond, J.P. Morgan, HSBC, Morgan Stanley, RBC Capital Markets
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