The European Investment Bank doubled the maturity of its yield curve by selling the first 30-year bond by a supranational agency on Wednesday.

 

AAA-rated EIB increased the sale of bonds after more than 200 investors placed orders for more than €11bn.

Demand for longer-dated assets has risen sharply in recent months as far as pension and insurance funds started looking for longer-dated assets to satisfy their liabilities. The recent reforms of accounting policy have also contributed to the process of increasing demand for longer-dated assets.

 

The new 30-year bond put forward new chances for Europe’s biggest borrowers the EIB, KfW of Germany and Cades of France. Barclays Capital, BNP Paribas, HSBC and Morgan Stanley managed the sale.

 

EIB also made profit in the dollar market selling $3bn of bonds that mature in June 2008. Moreover, dollar market also came to feel the presence of Depfa ACS, the Irish-based public finance agency, while the sale of Irish asset-covered bonds was raised by $250m to $1.25bn, and the issue was priced to yield 43bp above the April 2010 Treasury.