12 November 2013

ESM issues 10-year bond

ESM placed a €3 billion 10-year benchmark bond with a coupon of 2.125 per cent maturing on 20 November 2023. The issuance spread at reoffer was fixed at mid swap plus 19 basis points. This implies a reoffer yield for investors of 2.26 per cent.

Goldman Sachs International, Natixis and Nomura acted as joint lead managers for this syndicated issue.

The bond was met with very strong interest, with more than €9.5 billion in orders received from investors worldwide.

Christophe Frankel, CFO and Deputy Managing Director, said "The exceptional demand for today's transaction has allowed us to complete the ESM's €9 billion funding target for 2013 and also pre-fund €1 billion for 2014. Today we issued €3 billion in order to provide investors with a liquid benchmark bond whilst at the same time staying close to the announced total issuance size for ESM. The remaining potential issuance weeks this year will therefore be used for the EFSF".

Press release

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ESM completes 2013 funding with EUR 3 billion placement of 10-year bond

On 22 November, trading started in the 10-year benchmark bond, which the European Stability Mechanism (ESM) had placed on 12 November, thereby raising €3 billion to complete its 2013 long-term funding programme. The bond placement met with strong investor interest, with close to €10 billion of orders received from investors worldwide. Goldman Sachs, Natixis and Nomura acted as lead managers for the bond, which has a coupon of 2.125% maturing on 20 November 2023.

The euro area accounted for more than half of investors (52%), followed by Asia (27%), and then the UK and Switzerland (17% combined), the rest of Europe (3%) and other countries (1%). Banks accounted for 40% of investors, followed by central banks, governments and sovereign wealth funds (30%), asset managers (19%), insurance and pension funds (5%) and other investors (6%).

Further reporting from DG ECFIN, 27.11.13

© European Stability Mechanism