EIB launches its second USD 2 billion global issue this year

The European Investment Bank, the European Union's lending institution, launched a USD 2 billion three-year global benchmark issue, its second Global bond this year.

Launched at a re-offer spread of 67 bps over the US Treasury, or 2 bps versus the US Agency curve, the issue achieved a strong distribution in the US, building on the growing appetite for supranational dollar product from North American investors. The issue was also bought by investors in Europe, Asia and the Middle East.

The joint book-runners are Deutsche Bank and Salomon Smith Barney. Co-lead managers are: ABN Amro, BNP Paribas, Credit Suisse First Boston, HSBC , Merrill Lynch, Morgan Stanley, Nomura and UBS Warburg.

Following from EIB's five year Global in January this issue plots another point on EIB's benchmark USD global yield curve.

EIB's Director General of Finance, Mr René Karsenti stated: "We are delighted with the strong distribution that we have achieved with this second EIB global USD transaction. I am particularly happy to see almost 30% of the bonds going to the US. This issue follows EIB strategy to provide liquid issues across the yield curve in the major currencies."

The European Investment Bank (EIB) was set up in 1958 under the Treaty of Rome to provide loan finance for capital investment furthering European Union objectives. It participates in the implementation of EU policies towards third countries that have co-operation or association agreements with the Union. In 2000, EIB financing totalled EUR 36 billion. To fund these activities, the EIB borrowed EUR 29 billion on the world's capital markets.