EBRD issues $1 billion 10-year global bond Investor confidence amidst positive market

The European Bank for Reconstruction and Development (EBRD) achieved a significant milestone on March 5, 2024, by successfully pricing its first 10-year USD Global transaction in two decades.

This USD 1 billion issuance marks the institution's second USD benchmark this year, following a USD 2.5 billion 5-year issuance in the previous month, Caliber.Az writes, citing the EBRD website.

Taking advantage of a positive global market environment and a clear pipeline, EBRD announced the mandate for the new USD 1 billion 10-year transaction on March 4, with Initial Pricing Thoughts of MS+53bps area. The response was overwhelmingly positive, with Indications of Interest surpassing $1.5 billion before books formally opened at 8 am UKT.

Investor interest continued to grow, reaching over $1.7 billion by 10 am UKT, leading to the spread being set at MS+53bps, aligning with Initial Pricing Thoughts. The global books closed at 1 pm UKT, with final orders exceeding USD 1.9 billion from more than 40 investors.

Global Central Banks and Official Institutions played a significant role, securing 44 per cent of the allocation. Geographically, the distribution demonstrated diversity across EMEA (45 per cent), Asia (43 per cent), and North America (12 per cent).

Jointly lead managed by Citi, Goldman Sachs, J.P. Morgan, and HSBC, the bond was issued at a reoffer price of 99.469 per cent, featuring a coupon of 4.250 per cent paid semi-annually. This results in a re-offer yield of 4.316 per cent, translating to a spread of +16.7 bps above the current 10-year US Treasury yield. The successful transaction underscores EBRD's continued access to the global capital markets and investor confidence in its offerings.