EBRD USD 550 Million 3-year SOFR FRN

By EBRD  Press Office
@ebrd

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Bond Details

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USD 550 million

5th March 2020

13th March 2020

13th March 2023

FRN, SOFR+26bps, Paid Quarterly

100%

SOFR+26bps

SOFR Index where SOFR Index Start and SOFR Index End will be 2 days prior to Interest Period

London Stock Exchange’s Regulated Market

Euroclear, Clearstream and DTC

BMO, Citi, Standard Chartered Bank, TD Securities

European Bank for Reconstruction and Development USD 550 Million 3-year SOFR FRN

The European Bank for Reconstruction and Development (EBRD, Aaa/AAA/AAA) successfully launched and priced a USD 550 Million Global bond issue, the issuer’s second SOFR linked USD Floating Rate Note since August 2019.

This bond is EBRD's first SOFR FRN linked to the New York Fed's compounded SOFR Index, which commenced publication on March 3rd 2020.  From an economics perspective, the SOFR Index-linked structure matches a compounded SOFR FRN with 2-day Observation Shift.

Encouraged by a short window of stable global market conditions, EBRD took advantage via a quick intraday execution for only the second ever issued SOFR Index linked benchmark to come to market.

The transaction was announced at approximately 10:30am London time, with investors invited to reflection interest at a Price Guidance of SOFR+26bps area.  Demand from the SOFR investor base grew gradually throughout the London morning, and by the first market update at 2.20pm London books were in excess of USD 400m.

Books closed in the London afternoon and with high quality investor interest exceeding USD 560m, a USD 550m transaction was launched.  The final spread was set at SOFR+26bps at this time. In total 16 investors participated in this transaction, with the highest share being taken by the Bank Treasury community. In terms of geographic distribution, the largest share was allocated to investors in the EMEA region. 

With this transaction, EBRD once more demonstrate its market-guiding role in the alternative reference rates market. 

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