In a potentially encouraging development for the global credit markets, European Investment Bank plans to sell at least $4 billion in three-year global bonds. Demand has been very strong, with orders already exceeding $7 billion, Reuters reported.
Because there is so much turmoil in the credit markets and many issues are being pulled due to an inability to sell, when a large offering like this goes through, it can stimulate investor interest in new issues. Every successive large offering then builds on the previous one.
And this is considered to be a particularly high-quality issue. The EIB is the financing arm of the European Union, and it is rated triple-A by Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings.
Citigroup, JP Morgan, and Merrill Lynch are managing the sale, according to the Reuters report.