Chicago, March 23 – The European Union sold a two-part offering of social bonds (Aaa/AA/AAA) on Tuesday with orderbooks reported to be in excess of €81 billion for both tranches, according to a market source.
The deal included an €8 billion tranche of 0% notes due March 4, 2026, which priced at 102.44 with a spread of mid-swaps minus 14 basis points, on top of talk. The notes have a yield of negative 0.488%.
The second long-dated tranche was for €5 billion of 0.45% bonds due May 2, 2046 and priced at 99.386 to yield 0.476%. The spread on the notes was mid-swaps plus 1 bp, also in line with talk.
Morgan Stanley is handling billing and delivery on both tranches. BNP Paribas, Bank of America, DZ Bank and Societe Generale are also listed as bookrunners.
The social bonds are being distributed through Regulation S. Settlement is planned for March 30.
Proceeds will be used to finance programs with a positive social impact, in line with the SURE social bond framework.
The bonds will be listed on the Luxembourg Stock Exchange.
| Issuer: | European Union
|
| Issue: | Social bonds
|
| Amount: | €13 billion
|
| Bookrunners: | Morgan Stanley (bill and deliver), BNP Paribas, Bank of America, DZ Bank and Societe Generale
|
| Trade date: | March 23
|
| Settlement date: | March 30
|
| Ratings: | Moody’s: Aaa
|
| S&P: AA
|
| Fitch: AAA
|
| Distribution: | Regulation S
|
|
|
| 2026 notes
|
| Amount: | €8 billion
|
| Maturity: | March 4, 2026
|
| Coupon: | 0%
|
| Price: | 102.44
|
| Yield: | Minus 0.488%
|
| Spread: | Mid-swaps minus 14 bps
|
| Price talk: | Mid-swaps minus 14 bps
|
|
|
| 2046
|
| Amount: | €5 billion
|
| Maturity: | May 2, 2046
|
| Coupon: | 0.45%
|
| Price: | 99.386
|
| Yield: | 0.476%
|
| Spread: | Mid-swaps plus 1 bp
|
| Price talk: | Mid-swaps plus 1 bp
|
|
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