EIB first non-sovereign issuer on the MTS

As from 1 September, the EIB's ITL 3 000 billion 5% 15/4/2008 euro-tributary issue has been traded on the MTS, Italy's screen-based market for government securities. This is the first bond not issued by a sovereign state to be traded on the MTS.

The issue, which was launched on 20 March 1998, is fungible with the EUR 2 billion ECU/euro issue of 4 March and the DEM 3 billion issue of 9 July 1998.

The fungibility clause may not be exercised by the issuer before payment of the first coupon (15/4/99). As from that date, the nominal amount of the bond will be over EUR 5 billion.

"The MTS listing confirms the EIB's important role as a benchmark supranational issuer on the capital markets", commented EIB Vice-President Massimo Ponzellini. "The high degree of liquidity of the euro-tributary issue, together with the EIB's top credit rating and the further potential increase in liquidity resulting from other possible euro-fungible issues, mean that this issue provides a firm benchmark, particularly for institutional investors".

Since 29 January 1997, the EIB has launched 24 euro-tributary issues totalling ECU 17.1 billion (over ITL 34 000 billion) in ten currencies (ECU, Italian lira, Deutsche Mark, French franc, Spanish peseta, Netherlands guilder, Portuguese escudo, Luxembourg franc, Greek drachma and pound sterling). Since the beginning of the year, the EIB has raised on the capital markets over ECU 21 billion in 19 currencies. In 1997, the Bank raised over ECU 23 billion in 18 currencies.Euro-tributary issues offer issuers the opportunity to redenominate in euro an issue launched in a European Union currency, through an exchange of permanent global notes, and also to make loans originally launched in Community currencies and subsequently redenominated in euro fungible into a single euro issue. Thus bonds with the same coupon and maturity date may, if the Bank so decides, be consolidated into a single issue.