The European Financial Stability Facility placed a €3 billion three-year benchmark bond maturing on 01/06/2015. The issuance spread at re-offer was fixed at mid swap plus 18 basis points. This implies a re-offer yield for investors of 1.162 per cent.
This bond by the EFSF was met with strong demand, with orders received in excess of €4.5 billion from investors around the world.
Christophe Frankel, CFO and Deputy CEO, stated: “Once again, EFSF has proved that it can successfully place a benchmark bond in a volatile market environment. This issue attracted some very large orders coming from new investors which shows that EFSF has become a major issuer in the SSA market.”
Bank of America Merrill Lynch, Crédit Agricole CIB and Royal Bank of Scotland acted as joint lead managers for this issue and Deutsche Finanzagentur acted as Issuance Agent.
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
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article