EBRD US$ 1.5 billion 1 per cent Global note due 16 February 2017

By EBRD  Press Office

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Execution Highlights:
· Very high participation from the global central bank community
· Achieved competitive pricing in context of secondary market trading levels
· Took advantage of favourable market conditions and strong demand at 5-year tenor

The European Bank for Reconstruction and Development (EBRD) has priced its first US$ benchmark of 2012, a US$ 1.5 billion 5-year Global note. The issue has a final maturity of 16 February 2017, pays a semiannual coupon of 1% and carries an issue price of 99.399 per cent to give a spread of + 27.95 basis points over the 5-year US Treasury 0.875 per cent due January 2017, equivalent to flat to the mid-swap rate.

The EBRD has executed the transaction during a window of improved market sentiment following better-than-expected US Non-Farm Payroll data and strong market dynamics, represented by an easing of UST yields.

The mandate was announced late London time on Wednesday 8 February. With good indications of interest following the mandate announcement and subsequently overnight, the orderbook formally opened at 8am London time on Thursday morning with initial price guidance of mid-swaps flat. Within 30 minutes, the orderbook had grown to over US$ 500 million, driven largely by the global central bank community.

By 11am, the orderbook had climbed over USD$1 billion with significant interest from Asia. The orderbook grew to over US$ 1.6 billion by the time books closed at 2pm. Given the high quality of the orderbook, primarily composed of central bank accounts, the size of the transaction was increased to US$ 1.5 billion, and the spread set at mid-swaps flat, in line with the original price guidance.

The composition of the orderbook highlighted the strength of the EBRD’s credit globally, with Asia being well represented and accounting for 64 per cent of orders, followed by EMEA at 30 per cent and the Americas taking the balance. Central banks and official institutions accounted for the largest share (60%), followed by banks (35 per cent) and fund managers (5 per cent).

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