Benchmark / reference issues

For some years it has been the Bank's strategy to strengthen its presence on major markets and offer highly liquid bonds to investors.

Back in 1996, the Bank launched the first initiatives to help create a liquid and widely diversified market in EUR. In 1999 the Bank introduced the Euro Area Reference Note Facility - EARN - (offering circular) designed to provide investors with transparency in the Bank's gradual build-up of a highly liquid series of EUR bonds.

As per end 2007, a complete yield curve has been established for EIB reference bonds through 15 liquid issues with outstandings of EUR 74 billion, maturing between 2008 and 2037. In many maturities these bonds represent the main AAA rated alternative to government bonds. Boosting the liquidity of such issues, the EIB is the only supranational borrower offering an entire EUR yield curve traded on the electronic MTS platform.

In parallel with building up its position in the EUR market, the Bank has strengthened its position in the GBP and USD markets.

In the GBP, the Bank maintained its position as the largest non-Gilt issuer, with a total outstanding sterling debt representing over 9% of the total GBP non-Gilt market at end 2007 (source: Barclays Sterling Non-Gilt Index, 31 December 2007). The Bank made 58 transactions, raising a total of GBP 7.5bn (EUR 11 billion) or 20.1% of the total programme for the year.

The USD market is a major plank of the EIB's borrowing programme. The Bank's approach to this market is strategic and predominantly comprises large, liquid, global benchmark issues. The Bank remained the largest non-US issuer of Global benchmarks, raising a record volume of USD 15 billion (EUR 11.3 billion). In USD, 28 transactions were executed raising a total of USD 19.1 billion (EUR 14.4 billion), or 26.3% of the total programme for the year.