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The issuance spread at reoffer was fixed at mid swap plus 104 basis points. This implies a reoffer yield for investors of 3.591 per cent. In spite of the recent market volatility, the issue was met with solid demand with orders received in excess of €3 billion from real money investors around the world.
Klaus Regling, CEO of EFSF, commented: “I am pleased that the EFSF has again attracted investors from all over the world with a satisfactory overall amount despite a difficult market environment”.
Following Ireland’s request, the funds for an amount of €3 billion will be disbursed to Ireland on 10 November. This is the first issue made following the ratification of the amendments to the EFSF’s framework which include an improved credit enhancement structure.
Barclays, Credit Agricole CIB and JP Morgan acted as lead managers for this issue and Deutsche Finanzagentur acted as Issuance Agent. Christophe Frankel, Deputy CEO and CFO, stated: “Since our first launch in January of this year, EFSF has established itself as a high quality issuer with a solid investor base”.