Terms of the transaction
Issuer: European Bank for Reconstruction and Development (EBRD)
Rating: Aaa / AAA / AAA (all stable) (Moody’s / S&P / Fitch)
Documentation: Issuer’s Global MTN programme
Format: Global SEC exempt
Issue Amount: USD 1,750,000,000
Pricing Date: 12th May 2020
Settlement Date: 19th May 2020 (T+5)
Maturity Date: 19th May 2025
Coupon: 0.500% Fixed, SA, 30/360
Spread vs MS: MS+19bps
Spread vs UST: CT5+19.9bps
Reoffer: 99.783 / 0.544%
Documentation: Issuer's Global Medium Term Note Programme
Target Market: Professional Clients, Eligible Counterparties & Retail (all distribution channels)
Joint Bookrunners: Barclays (B&D/DM), J.P. Morgan, Nomura, TD Securities
On Tuesday, 12th May 2020, the European Bank for Reconstruction and Development (EBRD), rated Aaa (stable) / AAA (stable) / AAA (stable), successfully issued a USD 1.75 billion 5-year fixed rate note at MS+19bps. The new bond, which matures on the 19th of May 2025, pays a coupon of 0.500% and priced at a reoffer price of 99.783. The transaction represents EBRD’s first fixed rate USD benchmark since March 2018. Barclays, J.P. Morgan, Nomura and TD Securities acted as Joint Bookrunners.
The bond proceeds will be utilised for general capital purposes, which will include EBRD's response to the COVID-19 pandemic. EBRD has announced a comprehensive EUR 21 billion Solidarity Package of response and recovery measures for 2020-2021, which includes a EUR 4 billion Resilience Framework.
Amidst a positive market backdrop, EBRD announced the mandate for a 5-year USD benchmark at 11:25 GMT on Monday, 11th May. The deal was marketed with initial pricing thoughts (“IPTs”) of MS+20bps area.
Just before 8:00 GMT the following morning, the Joint Lead Managers opened books, keeping guidance unchanged and with IoIs in excess of USD 1.2 billion. The orderbook developed quickly over the course of the early morning session, growing to in excess of USD 2 billion by approximately 10:09 GMT at which point the spread was set at MS+19bps.
The orderbook continued to grow and at 15:15 GMT the transaction was launched, with the high quality of the orderbook allowing the deal to be upsized at USD 1.75 billion with the final demand in excess of USD 2.2 billion.
At 17:21 GMT, the transaction priced.
Investor Type Geography
CB / OIs 54% Asia 37%
Banks 35% Americas 34%
Asset Manager 11% EMEA 29%