EIB announces its first global Euro denominated bond issue

The European Investment Bank plans within the next few weeks to issue its first Euro global bond, subject to market conditions. The amount is expected to be Euro 2 billion, with a 10 year maturity, and will be placed simultaneously in Europe, USA and Asia.

Commenting on the issue, EIB President and Chairman, Sir Brian Unwin, said: "This will be our first global issue denominated in Euro and forms part of our strategy to support the development of the new currency. As the European Union's financing institution and one of the expected largest high-quality issuers in Euro bonds, we are committed to building up a strong, liquid and well diversified market for the Euro. Our global Euro bond will reinforce our continuing support for Europe's economic and monetary union, and allow us to respond to fast developing interest in high-quality investment in Euro outside Europe, particularly in the USA."

As with the Bank's previous Euro and "Euro-tributary" bonds, the new global bond issue is expected to contain a clause allowing it to be fungible with other Euro-tributary issues. The definitive offer will be by means of a prospectus. Before launching the issue, the EIB plans a number of presentations to investors, particularly in the USA.

As part of its active policy to support the Euro, the EIB issued its first Euro denominated bond in February 1997 for Euro 1.3 billion. Since the beginning of 1997, the Bank has also issued a number of benchmark Euro-tributary bonds in EU currencies (NLG, FRF, DEM, PTE, GBP, ITL, and LUF) on virtually similar terms and conditions for each maturity, with the possibility of being redenominated into Euro after January 1999. To date, the EIB has issued a total of approximately Euro 8.5 billion in Euro and Euro-tributary issues with six different maturity dates, ranging from five to 30 years.