EIB announces potential market stabilization measures by J.P. Morgan

Published 01/08/2025, 04:11 AM

LUXEMBOURG - The European Investment Bank (EIB) may engage in market stabilization activities for its upcoming securities offering, coordinated by J.P. Morgan Securities PLC. The stabilization period, which began today, is expected to continue until no later than February 8, 2025, as per an announcement made by the Stabilisation Coordinator.

The securities in question are EUR 10-year fixed-rate notes, which are due on January 15, 2035, with the coupon and offer price yet to be confirmed. These notes will be listed on the Luxembourg exchange, with denominations set at EUR 1,000 each.

J.P. Morgan Securities PLC will act as the Stabilisation Coordinator, with BNP Paribas (OTC:BNPQY), Morgan Stanley (NYSE:MS), and Natixis serving as Stabilisation Managers. The group may over-allot the securities by up to 5% of the aggregate nominal amount as part of the stabilization strategy.

Market stabilization measures are legal practices aimed at supporting the market price of securities immediately following their issuance. These measures can include over-allotment and secondary market transactions. However, there is no guarantee that stabilization will occur, and if initiated, it can be halted at any time within the defined period.

The stabilization trading venue will be over the counter, with specific details to be confirmed. The Stabilisation Manager(s) have the capacity to over-allot the securities as long as the total does not exceed 105 percent of the initial offering size, and they can also undertake transactions to maintain the securities' market price above levels that might otherwise prevail.

This announcement is an informational notice and should not be considered an invitation or offer to underwrite, subscribe for, or acquire securities. The offer is directed at persons outside the United Kingdom (TADAWUL:4280) or those within the UK who have professional investment experience or are high net worth individuals, as defined by the Financial Services and Markets Act 2000.

The offer of these securities is subject to regulations, including the Prospectus Directive of the European Economic Area (EEA), and is only addressed to qualified investors or those legally permitted to engage with the offer within the EEA member states.

The information based on this press release statement is for factual reporting only and does not constitute financial advice or an endorsement of the EIB's securities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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