European Investment Bank Prices €5 Billion 10-Year EARN Benchmark Bond with Attractive Coupon Rate

European Investment Bank Prices €5 Billion 10-Year EARN Benchmark Bond with Attractive Coupon Rate

(IN BRIEF) The European Investment Bank (EIB) has announced the successful pricing of a €5 billion 10-year EARN benchmark bond, set to mature on July 15th, 2033. The bond carries an annual coupon rate of 3.000% and was issued at an issue price of 99.040%, with a spread of +64.4 basis points over the DBR 2.3% 15th February 2033. The EIB received strong investor demand, resulting in a final orderbook of over €43 billion. This issuance brings the EIB’s total funds raised for the year to over €40 billion, representing approximately 80% of its 2023 borrowing authorization. These funds will be utilized to support sustainable economic growth and job creation across Europe.

(PRESS RELEASE) LUXEMBOURG, 4-Jul-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, is pleased to announce the successful pricing of its latest €5 billion 10-year EARN benchmark bond, scheduled to mature on July 15th, 2033. This bond offers investors an attractive annual coupon rate of 3.000% and was issued at an issue price of 99.040%. It carries a spread of +64.4 basis points over the DBR 2.3% 15th February 2033.

Following the announcement of the mandate for a 10-year EARN benchmark on Monday, July 3rd, the books officially opened the next morning at 8:50 am CEST, with an initial price guidance of mid-swaps +6 basis points area. At 10:10 am CEST, the spread was set at mid-swaps +4 basis points, reflecting strong investor demand, with total book orders exceeding €30 billion (including Joint Lead Managers interest). The orderbook was subsequently closed at 11:00 am CEST, and shortly after, a €5 billion deal size was launched. Final books reached an impressive total of over €43 billion (including Joint Lead Managers interest).

With the successful completion of this issuance, the European Investment Bank has raised over €40 billion year-to-date, reaching approximately 80% of its 2023 borrowing authorization. These funds will be instrumental in supporting the Bank’s ongoing mission to finance projects that promote sustainable economic growth and job creation across Europe.

Composition of demand:

Summary Terms and Conditions for the new bond issue

Investor Relations
investor.relations@eib.org
+352 43 79 – 53000

SOURCE: European Investment Bank