EIB launches Euro Debt Exchange Offer

The European Investment Bank is launching an Euro Debt Exchange Offer Programme to enable its bondholders from time to time to exchange European currency and ECU bonds into Euro or Euro-tributary issues. All the EIB's outstanding issues in ECU and EMU-participating currencies, which currently amount to some EUR 51 billion equivalent (excluding Euro-tributary bond issues), are eligible for the EIB's new programme.

EIB President, Sir Brian Unwin, said: "This programme will reinforce the Bank's service to its bondholders, giving them the opportunity to exchange their old issues with more liquid benchmark Euro or Euro-tributary EIB bonds. Following the issue by the Bank of Euro or Euro-Tributory bonds to the value of over Euro 15 billion since early 1997, the exchange programme also represents a key element in the EIB's strategy, as the European Union's financing institution, to contribute directly to the early emergence of a deep and large market for the future Euro."

Paribas is acting as Arranger and Exchange Agent, together with a group of Exchange Agent banks: ABN AMRO, Banca Commerciale Italiana, CDC Marchés, Deutsche Bank, Paribas, Santander Investment and SBC Warburg Dillon Read.

The programme complements the EIB's policy to restructure its outstanding debt with a view to EMU and the introduction of the Euro. Under this strategy, the EIB launched the first ever Euro bond issue in January 1997, alongside a series of benchmark Euro-tributary issues - bonds in national currencies designed to be converted into Euro from next January, thus helping to create a large future pool of Euro with a yield curve. In March this year, the Bank launched its first Euro-global for Euro 2 billion.

Todate the EIB has raised over Euro 15 billion in 23 benchmark issues in ten currencies, including Euro and Euro-tributary bonds. This year, the EIB expects to raise some ECU 26 billion on capital markets of which over ECU 20 billion will be in Euro or currencies that will be replaced by the Euro on 1st January 1999.

In 1997, the Bank lent over ECU 26 billion of which 90% was in the European Union, and on capital markets launched issues in over 20 currencies equivalent of some ECU 23 billion.

René Karsenti, Director General for Finance, will further present the program at the "Euromoney Global Borrowers and Investors Forum" to be held at the Hilton Hotel, London, Tuesday 16 June at 9.30 am.