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The issuance spread at reoffer was fixed at mid swap plus 75 basis points. This implies a reoffer yield for investors of 2.409 per cent. Barclays, Deutsche Bank and Société Générale CIB acted as lead managers for this tap, and Deutsche Finanzagentur acted as Issuance Agent.
Christophe Frankel, Deputy CEO and CFO stated, “Today’s tap of our first seven-year bond comes in response to strong reverse inquiries from key investors looking at the middle range of the curve in line with the level of the secondary market".
The funds raised will be used to support the financial assistance programmes for borrower Member States. 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 beneficiary countries.