EIB Prices EUR 5bn 5-Year Bond with Strong Demand and Oversubscription

EIB Prices EUR 5bn 5-Year Bond with Strong Demand and Oversubscription

(IN BRIEF) The European Investment Bank (EIB) successfully priced a EUR 5bn, 5-year EARN benchmark bond on February 5, 2025, with a coupon of 2.375% and a spread of +28.8bps over the OBL 191. The bond issuance was heavily oversubscribed, with the order book growing 9.5 times and attracting almost 300 orders. This issuance follows EIB’s earlier EUR 5bn 10-year bond issued in January 2025 and represents over 35% of the EIB’s EUR 60bn funding program for the year. Demand came from various investor types and geographical regions, with strong participation from bank treasuries and central banks. The bond is set to be listed on the Luxembourg Stock Exchange.

(PRESS RELEASE) LUXEMBOURG, 6-Feb-2025 — /EuropaWire/ — On February 5, 2025, the European Investment Bank (EIB) successfully priced a new EUR 5bn, 5-year EARN benchmark bond, maturing on May 15, 2030. The bond, which carries an annual coupon of 2.375% and is priced at 99.781%, provides a spread of +28.8bps over the OBL 191 (DBR 2.400% due April 18, 2030). This marks EIB’s largest orderbook for a 5-year EARN benchmark transaction and the second-largest overall, with the book oversubscribed 9.5 times and nearly 300 orders received.

This issuance follows EIB’s earlier EUR 5bn 10-year benchmark in January, marking its second consecutive EUR 5bn EARN transaction of 2025. The mandate for this transaction was announced at 11:45am CET on February 4, and books officially opened the next morning at 08:55am CET. Initial guidance was set at mid-swaps +25bps. The order book surpassed EUR 40bn (including EUR 2bn JLM interest) by 10:06am CET, prompting the spread to be tightened to mid-swaps +23bps, with the size maintained at EUR 5bn. By 11:00am CET, the order book exceeded EUR 47.5bn, including EUR 2bn JLM interest.

With this transaction, EIB has raised over EUR 21bn in bonds to date, completing more than 35% of its EUR 60bn funding program for 2025.

The demand for the bond came from a diverse range of geographical regions and investor types. Bank treasuries accounted for 52% of the demand, followed by fund managers at 23%, and central banks and official institutions at 25%. The geographical breakdown saw strong interest from the United Kingdom (32%), the rest of Europe (33%), Asia (13%), and smaller contributions from France (10%), Germany (8%), and the rest of the world (4%).

The bond’s terms include a re-offer price of 99.781%, a re-offer yield of 2.421%, and a fee of 0.125%. The bond will be listed on the Luxembourg Stock Exchange, with Deutsche Bank, HSBC, Societe Generale, and TD serving as joint lead managers.

Media Contact:

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SOURCE: European Investment Bank