Case study

Strong investor demand for CEB’s first issuance in 2023

09 Jan 2023 . 3 min read

A bank with a social mandate for Europe

The Council of Europe Development Bank (CEB) is a multilateral development bank with an exclusively social mandate. Through the provision of financing and technical capabilities for projects with a high social impact in its member states, the CEB actively promotes social cohesion and strengthens social integration in Europe.

Set up in 1956, the CEB, which has 42 member states, participates in financing social projects, responds to emergency situations and contributes to improving the living conditions of the most disadvantaged population groups. It carries out its mission within the strategic framework of a formal "Development Plan" that describes the logic underpinning its action and sets forth guidelines for the activity in the medium term.

Acting on its mandate to promote social cohesion and integration in Europe, and to aid refugees, migrants and displaced persons, the CEB was the first multilateral development bank to disburse grants to provide immediate assistance to refugees from Ukraine.

CEB captures over £700 million in investor demand, reaching its largest Sterling orderbook to-date

Looking to issue a new 3-year Sterling bond, it’s first transaction for 2023, the CEB asked NatWest to support in the role of Joint Bookrunner. This followed NatWest’s Joint Lead Manager role on CEB’s Social Inclusion Bond, issued in June 2022, which supported the Ukraine refugee response.

As in previous years, January 2023 kicked off with a number of Sterling issuances, which the CEB was quick to join, announcing its new Sterling bond to the market. When books opened, investors swiftly placed orders, which quickly rose to over £350 million. After the spread was set, investor demand picked up even further, resulting in a final order volume of over £700 million, which marked CEB’s largest Sterling orderbook to-date.

Based on the strong demand, the CEB opted for a bond size of £500 million, while the bond’s annual coupon was set at 4.250%.

Investor demand was led by UK investors who took 58% of the allocation, followed by investors from Asia and Middle East and Africa (MEA) who took 30%. Looking at investor type, Central Banks and other Official Institutions took 49%, followed by banks with 38%.

NatWest committed to contribute to social progress in Europe

Damien Carde, Head of Frequent Borrower Group DCM, NatWest, said: “We’re delighted that the CEB has achieved a very strong outcome, and we’re proud to have worked again with the CEB after supporting its Social Inclusion Bond in June 2022 in the role of Joint Lead Manager. This transaction demonstrates our commitment to actively contribute to social, economic and environmental progress in Europe by supporting customers such as the CEB.”

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