Paribas acts as lead manager for the first ever Euro denominated issue for the European Investment Bank.NEW YORK--(BUSINESS WIRE)--Jan. 31, 1997--Paribas has today announced that it has acted as Joint Lead Manager for a one billion 7-year Euro transaction for the European Investment Bank European Investment Bank, nonprofit bank created in 1958 by the six founding countries of the European Economic Community (now part of the European Union [EU]). (EIB See NIST binary. ). This is the first ever issue denominated in Euro, the currency to be introduced at the start of the third stage of European Monetary Union European Monetary Union An agreement by participating European Union member countries that includes protocols for the pooling of currency reserves and the introduction of a common currency. , pursuant to Article 109j(4) of the Treaty establishing the European Communities European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. . Until the start of such third stage, all monetary rights and obligations in respect of the notes shall be made in ECU ECU See: European Currency Unit ECU See European Currency Unit (ECU). at the rate of one ECU for one Euro. This issue not only represents a natural evolution from last year's EIB 650mn ECU deal - led by Paribas PARIBAS Banque de Paris et des Pays-Bas (French: Bank of Paris and the Netherlands - now BNP Paribas) - which set the precedent A court decision that is cited as an example or analogy to resolve similar questions of law in later cases. The Anglo-American common-law tradition is built on the doctrine of Stare Decisis ("stand by decided of one for one ECU/Euro conversion language; more importantly, it marks a very significant step forward in the construction of the single currency bond market and it offers additional attractions: - The issue will not have to redenominate in 1999 - Investors are assured that they will receive Euros at the earliest stage of EMU emu or emeu (both: ē`my  ), common name for a large, flightless bird of Australia, related to the cassowary and the ostrich. This deal also builds up on the strong momentum in the ECU market, supported by substantial redemptions. The bond will provide investors with a welcome alternative to the UK ECU note programme and the French ECU OAT auction programme. This transaction is one of the largest in any Eurobond Eurobond A bond that is denominated in a different currency than the one of the country in which the bond is issued. Notes: A eurobond is usually categorized by the currency in which it is denominated, and is usually issued by an international syndicate. market. Finally, the issue allows also for consolidation with other issues originally denominated in national currencies, offering a potential for even greater liquidity. The availability of small denominations (Euro 4) will facilitate such consolidation. This issue has met with tremendous enthusiasm from both institutional and retail investors Retail Investor Individual investors who buy and sell securities for their personal account, and not for another company or organization. Notes: Retail investors buy in much smaller quantities than larger institutional investors. . Paribas, an international wholesale bank with operations in nearly 60 countries around the world, is active in the following core businesses: corporate banking asset management, capital markets, advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , and securities custody and clearing services. Paribas and its affiliates operate worldwide under the trading name Paribas. In the U.S. Paribas conducts certain capital markets activities through Paribas Corp., a U.S. registered broker/dealer. -0-
Paribas' Performance in the "Euro" Bond Markets
(FFr, DM, ECU, BEF, NLG, ATS, LUF Bonds)
League Tables (1996)
Eurobonds
Rank Dealer Amount Issues
(USD mn equiv.)
1 ABN AMRO Hoare Govett 13,320 59
2 Paribas 9,527 38
3 Deutsche Morgan Grenfell 9,080 36
4 Societe Generale 8,590 29
5 SBC Warburg 7,728 48
6 CS First Boston/Credit Suisse 7,343 37
7 Dresdner Kleinwort Benson 6,988 19
8 Merrill Lynch 5,979 31
9 Banque Nationale de Paris 5,676 28
10 Rabobank 4,369 17
Total 129,720 518
Euro and Global Bonds
Rank Dealer Amount Issues
(USD mn equiv.)
1 ABN AMRO Hoare Govett 13,320 59
2 Deutsche Morgan Grenfell 10,182 39
3 Paribas 9,527 38
4 Societe Generale 8,590 29
5 SBC Warburg 7,728 48
6 CS First Boston/Credit Suisse 7,690 38
7 Merrill Lynch 7,340 34
8 Dresdner Kleinwort Benson 6,988 19
9 Morgan Stanley 5,818 28
10 Banque Nationale de Paris 5,676 28
Total 136,920 526
CONTACT: Paribas Capital Markets Janine Mejeur, 212/841-3070 |
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