The EFSF placed a €3 billion 21-year benchmark bond maturing on 4 September, 2034. Barclays, Deutsche Bank and RBS acted as lead managers for this issue.
Today’s very successful long dated bond issue was a rare opportunity for investors, as EFSF had only issued two bonds in the 20-year and longer maturity since its inauguration in January 2011. This was met with large investor demand, with more than €4 billion in orders received from over 50 investors worldwide.
The issuance spread at re-offer was fixed at mid swap plus 37 basis points. This implies a re-offer yield for investors of 3.043 per cent.
Christophe Frankel, CFO and Deputy CEO, stated: "We are very satisfied with this transaction. Strong demand and favourable market conditions allowed us to issue a €3 billion 21-year benchmark bond. Following today’s rare issue in the long end of the curve, the EFSF has now raised €12 billion out of the €13 billion target for this quarter and will pass on next week's issuance window, returning to the market in the week of 9 September to complete EFSF funding for the third quarter."
Press release
© EFSF - European Financial Stability Facility
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