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This brings the total new issue size to €2.5 billion. The issuance spread at reoffer was fixed at mid swap plus 115 basis points. This implies a reoffer yield for investors of 3.472 per cent. This is the first tap for the EFSF’s longest-dated bond, and follows successful taps of a 20-year and a 7-year bond in May.
Deutsche Bank, Goldman Sachs and JP Morgan acted as lead managers for this tap and Deutsche Finanzagentur acted as Issuance Agent. Christophe Frankel, Deputy CEO and CFO, stated: “The tap of our longest-dated transaction so far demonstrates continued strong investor demand at the long end of the curve and an opportunity to take advantage of favourable market conditions".
Today’s tap comes in addition to a benchmark transaction planned for the near future. The funds raised will be used to support the financial assistance programmes for beneficiary countries. 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.