EIB leent het Britse MKB honderden miljoenen euro's (en)
Positive reception from retail intermediaries and ISA managers
Priced at 20bp over 4.25% March 2009 Gilt
The European Investment Bank, rated Aaa/AAA/AAA, launched its first sterling retail-targeted transaction of 2004 on Thursday, 12th February 2004. The GBP 250 million tap to the existing 4.25% issue due December 2010 was managed by joint bookrunners Barclays Capital, HSBC and Royal Bank of Scotland. The issue was priced at a spread of 20bp over the 4.0% Gilt due March 2009.
The issue was targeted at the UK retail investor base and generated good demand from retail intermediaries and institutional ISA managers. The 2010 final maturity of the issue meets with requirements for ISA inclusion and this enhanced the appeal of the issue for UK retail investors.
The co-lead group for this transaction comprised other members of EIB's Sterling Retail Dealer Group: Citigroup, Deutsche Bank, Dresdner Kleinwort Wasserstein, Merrill Lynch, Morgan Stanley, RBC Capital Markets, UBS Investment Bank and Winterflood Securities.
Comments from EIB and the Lead Managers:
EIB's René Karsenti, Director General, Finance, said:
"UK-based retail has been an increasingly important investor base since the establishment of our retail dealer group. We believe this issue provides an attractive high-grade investment opportunity for such investors."
Barclays' Heather Day, DCM, said:
"This particular maturity captures strong retail demand and is perfectly timed for the ISA season."
HSBC's P J Bye, Director, said:
"This increase will appeal both to retail clients, in the run-up to the UK fiscal year end, but also institutional accounts, now that we have reached the GBP 500 million threshold."
RBS' Ignacio Cortes, Director, said:
"This EIB retail targeted issue underlines the Bank's commitment to the sterling sector, and in particular its desire to tailor issuance to access retail demand. EIB is once again leading the way in expanding the reach and penetration into the UK investor base."
Background information on EIB
Owned by the European Union Member States, the EIB is the EU's long-term lending institution, financing projects that promote EU economic development and integration. Besides supporting projects in the Member States, its main lending priorities include financing investments to prepare economies for EU accession. The EIB operates on a non-profit maximising basis and lends at close to the cost of borrowing. The EIB has a strong capital base, with subscribed capital of EUR 150bn. The Bank has AAA credit ratings with a stable outlook (Fitch, Moody's, Standard and Poors). In 2003, the Bank borrowed EUR 42 billion in 15 currencies, with around 88% raised in EUR, GBP and USD combined.
Background on EIB in the sterling market
EIB is the largest non-gilt issuer in the sterling market. It currently has approximately £35 billion outstanding with maturities up to 2040. Issuance includes both benchmark and structured issues. EIB maintains dedicated institutional and retail dealer groups for the sterling market.
For further information please contact:
Thomas Schroeder, EIB: Tel: +352 4379 4259;
Heather Day, Barclays Capital: Tel: + 44 20 7773 9627; P J Bye, HSBC: Tel: +44 20 7991 5863;
Ignacio Cortes, Royal Bank of Scotland: Tel: +44 20 7334 1561 ;