Bond details:
Amount: USD 1 billion
Settlement date: 13 March 2024
Coupon: 4.250% per annum, payable semi-annual
Maturity date: 13 March 2034
Issue price: 99.469%
Spread: +53 bps versus mid-swap
+16.7bps over the current 10 year UST:
UST 4.000% due 15th February 2034
Interest dates: 13th March and 13th September
Listing: London Stock Exchange’s Regulated Market
Clearing systems: Euroclear, Clearstream and DTC
Joint lead managers: Citi, Goldman Sachs, HSBC, J.P. Morgan
On Tuesday 5th March 2024, European Bank for Reconstruction and Development (EBRD, Aaa/AAA/AAA) priced its first 10-year USD Global transaction in twenty years. The USD 1 billion new issue is also the issuer’s second USD benchmark this year, following on from its USD 2.5 billion 5-year last month.
Encouraged by a positive global market backdrop and clear pipeline, the mandate for a new USD 1bn 10-year transaction was announced on Monday 4th March at 2pm UKT with Initial Pricing Thoughts of MS+53bps area. Indications of Interest built steadily throughout the US day and into the Asian session, reaching over USD 1.5 billion by the time books formally opened at 8am UKT.
Interest from investors continued to grow throughout the London morning surpassing USD 1.7 billion by 10am UKT, enabling the spread to be set at MS+53bps, in-line with Initial Pricing Thoughts. Global books closed at 1pm UKT with final orders in excess of USD 1.9 billion across over 40 investors.
The transaction attracted impressive demand from global Central Banks / Official Institutions who took 44% of allocation. Geographically the distribution was diverse across EMEA (45%), Asia (43%), and North America (12%).
This transaction was joint-lead managed by Citi, Goldman Sachs, J.P. Morgan and HSBC.
The bond was issued at a reoffer price of 99.469% and pays a coupon of 4.250% semi-annually. This gives a re-offer yield of 4.316%, equivalent to a spread of +16.7 bps above the current 10-year US Treasury.