EIB launches USD 3 billion global issue

The European Investment Bank launched a USD 3 billion 3-year global issue, its first US Dollar benchmark transaction of 2002.

The issue has a coupon of 4% and a maturity of 15th March 2005, which will provide investors with the full benefit of the steepness of the 2- to 5-year US Treasury curve and avoid congestion in the January 2005 maturity. It is priced at 99.717% to give a re-offer spread of 104 bps over the 2-year US Treasury.

CSFB, JP Morgan and Nomura are the joint bookrunners for the transaction. The co-lead managers are: BNP Paribas, Daiwa Securities, Dresdner Kleinwort Wasserstein, HSBC, Merrill Lynch, Morgan Stanley and Schroder Salomon Smith Barney.

The bond will be immediately traded on Market Axess and shortly thereafter on the TradeWeb. 

EIB Director General of Finance, René Karsenti said: "This well-timed issue reinforces the EIB's strategy to provide liquidity and a line of benchmark transactions to the market. Consistent with this strategy and this issue, the EIB is promoting investor diversification into the US and Japan while retaining its strong following in Europe and Asia."

Lead managers quote: "This issue compares favourably with recent supply and has seen strong placement, particularly in Asia and the US, with 90% of orders being for cash. The inclusion of the transaction on Trade Web and Market Axess will increase the liquidity of EIB paper in the US and reinforce the benchmark status of its debt in this region."

EIB is the European Union's international financing institution - the EU member states are its shareholders. With a AAA/Aaa credit rating, the EIB raises finance on capital markets to provide long-term funds in support of projects furthering EU economic objectives.