EIB bepaald prijs van nieuw vergelijkend onderzoek (en)

• - 

  Orderbook over EUR 10bn
• - 

  Books shut in under 3 hours
• - 

  Strong and diverse demand from central banks, banks and funds/ insurance
• - 

  Well balanced demand and strong participation from outside Europe

The European Investment Bank today priced its first new EUR benchmark Euro Area Reference Note (EARN) of 2012. The issue carries an annual coupon of 1.625% and has a final maturity date of 15th January 2015, providing a fresh liquidity point in the front-end of the EIB EARNs curve. The bond was priced at a spread of mid-swaps plus 38bps (initial guidance was Mid-swaps of +45/40 bps) equating to a spread of +133 bps over the DBR 3.75% due January 2015.

Central banks and official institutions drove demand for the transaction together with banks (37% each). The total order book exceeded EUR 10 billion. It was well diversified, consisting of over 246 orders. Almost all orders were at reoffer and on a cash basis. Geographically, there was exceptional demand from Germany (31%) and also strong investor interest from outside Europe (almost 40%), thereof 23% from Asia.

Composition* of demand for the EARN issue:

*after allocation

With this transaction, total EARNs have reached around EUR 126 billion in total outstandings.

Comments on the issue:

Eila Kreivi, Director and Head of Capital Markets at the EIB, said: “The very strong scale and quality of demand demonstrates the enduring strength of EIB in the market and the confidence in the liquidity of EIB benchmarks. Investors clearly regard present spreads as attractive.”

Nathanial Timbrell-Whittle, Co-Head, Global SSA DCM at BNP Paribas, said: “Amassing such a large volume of orders in such a short space of time is testament to the depth of EIB’s investor base and global reach. With this transaction the EIB has kicked off its funding programme in 2012 with a bang.”

Bill Northfield, Managing Director, Head of SSA Origination at Deutsche Bank, said: “Against a backdrop of heavy new issue supply and continued low absolute yields, the EIB has succeeded in bringing the largest SSA benchmark of the year. This maintains its premier issuer status with another finely priced yet oversubscribed EARN. The EIB’s ability to attract a top-quality list of investors across all three main regions is testament to EIB’s loyal investor following.”

PJ Bye, Managing Director, Public Sector Syndicate at HSBC said "EIB was able to respond quickly to a significantly improved tone in the market, printing a twice oversubscribed transaction with a high quality and diverse international order book. EIB continues to attract an extremely loyal central bank and institutional investor bid, but we also saw a high level of European bank treasury interest in this deal due to the recent ECB liquidity measures. The new issue priced very much in line with their outstanding EARN curve and we expect to see strong follow-on interest from investors scaled back in the allocation process.”

Keith Price, Head of SSA Euro Syndicate at J.P. Morgan, said: “Once again EIB has shown its superb access to benchmark funding in a key maturity on the curve. The sheer magnitude of the book combined with lack of price sensitivity from very high quality investors was what drove this transaction and enabled pricing at the tight end of the range. EIB clearly has loyal central bank and real money investor communities who appreciate liquidity across the curve.”

Summary Terms and Conditions for the new Bond Issue

For further information please contact:

Carlos Ferreira da Silva: +352 4379 76246

EIB funding strategy and results

The Bank’s funding strategy combines a consistent and transparent approach with flexibility and innovation, both in terms of product and maturity. In 2011 the EIB raised EUR 76 billion. In 2012 the Bank plans to raise EUR 60 billion.

Background information on EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The Bank’s strong credit standing is underpinned by exceptional asset quality, a strong capital base, firm shareholder support, conservative risk management and a sound funding strategy.