EIB launches its third and largest USD global bond to date

The European Investment Bank, the European Union's lending institution, launched a USD 3 billion (1) 5-year global benchmark issue, its third and largest global bond this year.

This issue reflects EIB's strategy to raise the liquidity and benchmark status of its dollar bonds and thereby increase distribution in the United States. The EIB's benchmark curve has now been increased to almost USD 23 billion.

Priced at a re-offer spread of 58.5 bps over the US Treasury, the issue achieved broad geographic distribution from customers in the US, Asia and Europe.

HSBC, Morgan Stanley, and Salomon Smith Barney are the joint book-runners for the transaction. The co-lead managers are: ABN Amro, BNP Paribas, Deutsche Bank, Dresdner Kleinwort Wasserstein, Credit Suisse First Boston, JP Morgan, Merrill Lynch, Nomura and UBS Warburg.

The lead managers have commented: "EIB's $3 billion 5-year benchmark global issue has clearly attracted strong worldwide demand. We have seen great participation from all centres. Most pleasingly, US investor interest has been particularly strong, enhancing EIB's penetration of that market, thus providing them with good investor diversification."

EIB's Director General of Finance, Mr René Karsenti stated: "This jumbo benchmark reflects the strategic importance of the USD market to EIB within its overall funding policy. I am delighted to see the increasing following which EIB is attracting in all geographical areas, in particular in the United States."

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. 

(1) 1 USD = 1.0926 EUR, 0.6872 GBP