By EBRD  Press Office @ebrd

On Thursday, January 18, 2024, the European Bank for Reconstruction and Development (EBRD),  successfully issued a US$2.5 billion 5-year fixed rate note at SOFR+39bps. The new bond, which matures on the 25th of January 2029, pays a coupon of 4.125 per cent and priced at a reoffer price of 99.893 per cent. The transaction size, at US$ 2.5 billion, represents EBRD’s largest ever USD benchmark transaction at inception. Barclays, Deutsche Bank, Morgan Stanley and Scotiabank acted as Joint Bookrunners.

The bond proceeds will be utilised for general corporate purposes which will be in line with EBRD’s broader strategic targets.

Amidst a robust market backdrop and stable swap spreads, EBRD announced the mandate for a 5-year USD benchmark at 09:30 GMT on Wednesday, 17th January, with the deal marketed at initial pricing thoughts (“IPTs”) of SOFR+42bps area.

The investor reception was positive from the outset with EBRD posting its largest ever indications of interests (IOI’s) update at US$ 5.5 billion (excluding JLM interests) at the following London open allowing spread guidance to be revised 2bps tighter to SOFR+40bps area.

The orderbook developed quickly over the course of the early morning session, growing to over US$ 7.3 billion (excluding JLM interests) by 09:40 GMT with the quality of the book supporting a further move tighter in spread, which was ultimately set at SOFR+39bps.

Building upon EBRD’s largest ever IOI’s update, the final orderbook closed in excess of US$ 7.9 billion (excluding US$ 550 million of JLM orders), representing EBRD’s largest ever USD orderbook with 132 investors participating. Furthermore, the size and quality of the orderbook facilitated the launch of a US$ 2.5 billion transaction – EBRD’s largest ever USD benchmark.