First EIB euro-tributary issue in Pesetas

The European Investment Bank, the European Union's financing institution, yesterday broke fresh ground in unveiling the first ever peseta-denominated euro-tributary issue. While providing the EIB with the scope to redenominate in euros as from the third stage of Economic and Monetary Union (EMU), issues of this kind are also fungible with earlier and future issues, offering identical characteristics, floated either in euros as such or in other currencies convertible into euros.

The present bond issue for ESP 30 billion carries a coupon of 4.5%, matures on 15 February 2003 and is joint lead-managed by Santander Investment and Caja de Madrid. As highlighted above, it is fungible with two previous issues floated on the same terms and conditions, namely for amounts of DEM 2 billion and FRF 3 billion.

This innovative peseta issue represents a further example of the Bank's strategic support for Monetary Union actively pursued since the beginning of this year. Indeed, with the aim of contributing towards the creation of a deep and liquid euro market, the Bank has to date launched 22 euro-tributary issues for an aggregate amount of 13.5 billion euros (some ESP 2 300 billion) in ten different currencies and with maturities ranging from 5 to 30 years. In the process, the Bank has carved itself a position on the markets as one of the largest suppliers of liquidity in the future single currency.