The auction was in relation to the reopening of the five-year bond which was initially placed on 21 March 2012 for an amount of €4 billion. The auction raised an additional €960 million. Investor demand was high, with over €2.6 billion in bids received.
Christophe Frankel, Deputy CEO and CFO, stated: “Following investor demand and according to our previous commitment, it was obvious for us to use an auction in this specific situation. For the EFSF, this is a cost-efficient way of raising a relatively limited amount of €1 billion. For investors in this bond, it will provide extra liquidity.”
The funds raised will be used to support the financial assistance programmes for Ireland, Portugal and Greece. In November 2011, EFSF adopted a new diversified funding strategy. One consequence of this strategy is that funds are no longer attributed to a particular country. The funds are pooled and then disbursed to the programme countries.
Press release
© EFSF - European Financial Stability Facility
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