The back-to-back born in the Dorchester

Issuers: European Investment Bank;

Tennessee Valley Authority

Amounts: $1 billion; Dm1.5 billion

Launched: Tuesday September 10

Dual lead manager: Lehman Brothers

In early September the European Investment Bank (EIB) and the Tennessee Valley Authority (TVA) pulled off an unexpected coup in the capital markets: a back-to-back swap. Each borrower cut several basis points off its borrowing costs by simultaneously launching two 10-year global bonds and swapping the proceeds with one another.

On September 10, TVA raised Dm1.5 billion in its first foreign-currency borrowing.