EFSF raises €3 billion in long 3-year bond deal

The European Financial Stability Facility (EFSF) says it has met the lionshare of its fourth-quarter funding needs, raising €3 billion in a long three-year maturity bond transaction. 

The EFSF raised €3 billion in a new long 3-year EUR benchmark 0% bond, maturing on 17 July 2023. 

The spread was fixed at mid-swaps minus 7 basis points, for a reoffer yield of -0.478 %. The order book was in excess of €7.8 billion.

The EFSF fourth quarter funding target is €4.5 billion.

“The latest EFSF bond issue was a success in the short end of the yield curve. Despite the very low rates we received high quality orders of close to €8 billion. It found great interest from investors outside the euro area,” said Siegfried Ruhl, EFSF Head of Funding and Investor Relations.

Non-euro area investors were allocated 52% of the latest bond, up from the historical average of 44%.

The new bond is governed by English law, as for previous EFSF issues. 

The EFSF was set up in 2010 under a trust law structure that is different to its sister borrower, the European Stability Mechanism (ESM). Last month, the ESM announced it would issue new euro-denominated bills and bonds under Luxembourgish law. 

Joint Bookrunners for the deal were Bank of America Merrill Lynch, LBBW and NatWest Markets.
 

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Martin Banks

Martin Banks

Martin Banks is a highly qualified journalist with many years experience of working within the EU institutions. He is an occasional, and highly valued, contributor to EU today, writing on a wide variety of issues.

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