By EBRD Press Office
The European Bank for Reconstruction and Development (EBRD, Aaa/AAA/AAA) has successfully launched a US$850 million 5-year Global SOFR FRN, the issuer’s first SOFR index-linked Floating Rate Note Benchmark since the beginning of the year, and follows on from their US$1 billion 4-year SOFR Floating Rate Note last October.
Encouraged by a positive global market backdrop following the Easter break, EBRD accessed the market swiftly to price the tightest 5-year SOFR linked Floating transaction launched by an SSA issuer to date.
The mandate for a new USD benchmark 5-year FRN transaction was announced on Tuesday, April 6, at 1.45pm UKT with Initial Pricing Thoughts of SOFR+20bps area. Indications of Interest built steadily throughout the US day and into the Asian session, reaching over US$800 million by the time books formally opened at 8.20am UKT.
Interest from investors continued to grow throughout London morning, enabling the spread to be set at SOFR+19bps, one basis point tighter than Initial Pricing Thoughts, at 11:15am UKT. The deal was upsized to US$850 million on the back of high quality interest from 27 investors, with final orders in excess of US$900 million.
In terms of investor distribution, Asset Managers (43%) and Bank Treasuries (45%) were core to the transaction, whilst Corporates (12%) were also notable. Geographically, US investors were prominent with 63 per cent allocation, followed by EMEA 8 per cent and UK 28 per cent. This transaction was joint-lead managed by BofA Securities, Daiwa, J.P. Morgan and Nomura.