Strong demand for US$1.5 billion EBRD global bond
08/06/2009 00:20
EBRD headquarters
08/06/2009 00:20
Tashkent, Uzbekistan (UzDaily.com) -- The EBRD has successfully launched a US$1.5 billion two-year global bond in the first issue by a supranational to be priced below Libor in 2009. The issue is jointly lead managed by Daiwa SMBC, HSBC, Morgan Stanley and RBC Capital Markets.
The coupon of 1.25% is payable semi-annually and the issue price is 99.988%, offering investors a spread over US Treasuries of 0.329%.
Demand for the triple-A borrower’s latest issue outstripped the initial offer of US$1 billion by more than 2-1/2 times at the first indicated price of five basis points below mid-swaps. The amount was subsequently raised to US$1.5 billion and the pricing adjusted to mid-swaps minus 10.
“This reaction to the bond shows there is strong demand in the market for high-quality paper,” said the EBRD’s Head of Funding, Isabelle Laurent.
The deal saw broad geographic demand, with 37% placed in Asia, 24% in the United States, 21% in the Middle East and Africa, and 18% placed in Europe. Two-thirds of the deal was placed with central banks and official institutions.
The EBRD has raised in excess of €3.5 billion so far this year, including its issues in the local currencies of the countries where it invests.
A five billion, five-year rouble bond issued in April this year will be followed up in the coming weeks by a further three billion five-year rouble issue.
The EBRD raises funds in local currencies primarily for on-lending to borrowers that have no or only limited revenues in foreign exchange and so helps them reduce foreign currency risks.
Subscribe to our Telegram channel!
25/04/2024Read more
$ 1 | 12667.00 | +0.022% |
1 | 13481.49 | -2.022% |
₽ 1 | 135.77 | -0.506% |