EUR1bn 2.875% Social Inclusion Bond Benchmark due March 2032

Paris - On Monday 17th March 2025, Council of Europe Development Bank (CEB), rated Aaa/AAA/AAA (all stable), priced a new EUR1bn 7-year Social Inclusion Bond (SIB) due 25th March 2032.

Highlights

• This transaction follows CEB's inaugural GBP-denominated SIB issued in January 2025 and their AUD 550 million 5-year SIB in February, with the total volume of SIB bonds now standing at over EUR12bn equivalent. This transaction also marks CEB's first EUR benchmark for 2025.
• There was strong investor interest for the transaction from the moment books opened on Monday 17th March, with demand for this 7-year SIB over €2.15bn when books closed.
• The quality of interest also supported a rare 3bps tightening from guidance, with the final spread set at MS+33bps.
• Socially Responsible Investors (SRI) provided very strong support with 87% of the issue allocated to such investors.

Deal details

• The mandate for CEB's annual flagship EUR SIB 7-year benchmark was announced to the market at 09.10 CET on Monday 17th March, with the guidance of MS+36bps area announced simultaneously for this intra-day transaction.
• Though geopolitics had caused volatility in recent weeks, with defense spending and tariff measures taking market focus, the backdrop remained supportive for new supply.
• Investors evidenced strong demand for the transaction from the moment books opened, with an orderbook totaling over €2.25bn, including €150m JLM interest, when the first update was released to the market at 11.20 CET.
• The size was subsequently set at €1bn, aligned with CEB's transaction aspirations, and the high quality of investor interest allowed guidance to be revised to MS+34a (+/-1).
• Books closed at 11.45 CET with demand totaling over €2.15bn, including €50m JLM interest, and the spread on the transaction set at MS+33bps, an impressive 3bps tightening from guidance levels.
• The transaction was priced at 14.35 CET, with a coupon of 2.875%, a re-offer price of 99.750% and a re-offer yield of 2.915%. The transaction priced with a spread of +33 over the 0% DBR February 2032.
• Over 50 accounts participated in the transaction with broad diversification among investor geography and type. Investors based in France took 34% of the transaction, followed by Benelux investors at 26% and Swiss / Austrian investors at 12%. UK, Southern Europe and Nordic investors accounted for 7% each, Germany 4% and Asia 2%.
• Banks accounted for just over half of the transaction at 53%. CB/OIs took 33% with Asset Managers taking 12%. Insurance and Pension Funds took 2%.
• There was a large share of Socially Responsible Investors (SRI) in the transaction, with 87% of the issue allocated to such investors.

Distribution statistics

By geography:
France: 34%
BeNeLux: 26%
Austria/Switzerland: 12%
Nordics: 7%
UK/Ireland: 7%
Italy/Portugal/Spain: 7%
Germany: 4%
Asia: 2%
Others: 1%

By investor type
Banks: 53%
CB/OI: 33%
AM: 12%
Ins/PF: 2%

For full technical details of the transaction, please click here.

The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.